The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has a new yearly high. It’s been shattering that ceiling almost every day this week.
At the time of writing, shares in the pizza franchise owner are trading for $161.76 – up 1.1%. Earlier, shares hit an intraday, yearly, and all-time high of $165.27. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.71% higher presently.
While the company hasn’t made any market-sensitive announcements in more than a month, clearly something is exciting investors.
Let’s take a closer look.
Extra cheese with some equity please
Since the company reported its full-year results in mid-August, the Domino’s share price has risen an extraordinary 27%. The ASX 200 is down by over 100 points in the same time period.
The company achieved record results, growing sales around 15% year-on-year (YoY) to $3.7 billion. This growth was underscored by a 21.5% YoY increase in online sales.
Many industries saw a similar trend as COVID-induced lockdowns saw customers flock to online purchasing and home deliveries. Pizza, of course, has been at the forefront of at-home service long before the pandemic. Much like with groceries, electronics, and other food services, stay-at-home orders have pushed online sales to new heights.
As well, the company increased its final dividend to 85.1 cents per share, meaning shareholders enjoyed a total FY21 dividend of $1.74 cents per share. This is a 45% increase from FY20.
Looking forward, Domino’s said FY22 would be a “record” year for store expansion. It did note that the Delta variant of COVID-19 has made predicting supply chain issues and demand difficult in the short term.
As Motley Fool has previously reported, one possible reason why the Domino’s share price is rising is based on the momentum of these earnings.
Domino’s share price snapshot
Over the past 12 months, the Domino’s share price has risen an incredible 96% and year-to-date is up an equally impressive 83%.
To put in context how impressive the Domino’s rise is, if you had invested $10,000 in the company when it first listed on the ASX in 2005, that would be worth nearly $790,000 today.
Domino’s Pizza Enterprises has a market capitalisation of about $13.9 billion.