Why Domino’s Pizza (ASX:DMP) shares hit a record high today

Investors are after a slice of the pizza giant’s growth narrative.

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Woman holding Domino's pizza up to her face and looking excited about the company's latest news

Image source: Getty Images

The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price has jumped into the green, setting a new all-time high of $124.91 in early trading today.

Domino’s Pizza shares are now exchanging hands for $124.20, an approximate 2.13% gain at the time of writing.

Let’s try and capture some of the tailwinds behind the Domino’s Pizza share price.

Growth strategy on show

Domino’s Pizza shares have delivered outsized returns over the past month, climbing 8.4% into the green over that time.

Investors have been pushing the Domino’s Pizza share price higher lately after Domino’s announced the acquisition of PizzaVest Company Limited (also known as Domino’s Taiwan) earlier this year.

Domino’s Taiwan is the second-largest pizza chain in Taiwan and operates 157 corporate and franchised stores across the region.

The Domino’s share price has climbed 7.7% higher since the release on 11 June.

The latest acquisition builds on additional momentum Domino’s has built throughout 2021 to fuel its global growth engine.

Domino’s is aiming to “double store numbers globally to 5,550 locations by 2031”, according to a report from the Australian Financial Review.

In addition, analyst sentiment supports Domino’s growth narrative. A leading broker is expecting the company to report strong earnings for FY21.

Investment bank Goldman Sachs Group Inc (NYSE: GS) estimates network sales growth of 13.9% coupled with revenue growth of 14.5% to $2.2 billion.

Goldman sees most of that growth underscored by Australian and New Zealand same-store sales.

There is no market-sensitive information on the company today. Therefore, it stands to reason that investors are buying a slice of Domino’s growth story, pushing its share price higher.

Domino’s Pizza share price snapshot

The Domino’s Pizza share price has posted a year-to-date gain of 40%. This extends the 12-month return to a total of 64%.

These results have beaten the S&P/ASX 200 Index (ASX: XJO), which has climbed about 25% over the past year.

At the time of writing, Domino’s has a market capitalisation of $10.77 billion.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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