Domino's at all-time high as sales surge

Signage at a Domino's pizza restaurant is pictured in Burbank, California October 16, 2012. REUTERS/Fred Prouser·Yahoo Finance

Domino's (DPZ) traded up to an all-time high Tuesday after its quarterly results topped estimates, sending the shares climbing 9%.

Recently, the Ann Arbor, Mich., pizza maker was gaining 9.2% to $82.65. At its peak, the shares were at $82.86, according to Yahoo Finance data.

The advance followed the announcement that earnings for the third quarter were 63 cents a share, 2 cents better than expected, with revenue that rose 10.5% from a year earlier to almost $447 million. That also surpassed estimates, as did same-store sales. Domestic same-store sales climbed 7.7%, while the international division had a comparable-sales increase of 7.1%.

Domino's, the second-largest U.S. pizza seller after Pizza Hut, has reworked its recipes and now has a store-remodeling program that's being implemented. Overall revenue was lifted by higher supply-chain sales and commodity prices, especially cheese, as well as increased equipment and supply sales to stores that are remodeling.

Revenue from supplies to franchise stores accounts for more than half of Domino's total. In the third quarter, domestic supply chain revenue was about $255 million.

The prior high for Domino's, at $80.61, was set on March 18, according to FactSet data. The stock has gained 18% in 2014, making it one of the best restaurants tracked by Yahoo Finance.

On average, Wall Street analysts currently estimate the stock is worth $82.50.

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