Domino’s Pizza, Inc.’s (DPZ) share price has broken through a key level of short-term resistance after the company reported strong first-quarter results last week.

Company Description

Domino’s Pizza, Inc. operates as a pizza delivery company in the United States and internationally. The company owns or franchises a network of 8,773 stores and has a market cap of $500 million.

First-Quarter Results

Who can argue that Pizza isn’t just flat-out delicous? Not customers of Domino’s Pizza, as the company reported solid first-quarter results on April 30 that were ahead of expectations.

Revenue was down a bit from last year to $321.8 million. Income came in at $23.8 million, a big jump from $14.1 million last year. producing earnings of 41 cents per share, blowing past the consensus of 17 cents.

Early Debt Retirement

Domino’s noted that its earnings were positively effected by a $21.2 million gain due to the early retirement of debt. CEO David Brandon said that the company “Used a combination of cash-on-hand and our bank revolver with a very low borrowing rate, we took advantage of opportunities to repurchase a portion of our debt at deep discounts.”

Geographic Results

Domino’s said that domestic sales at stores open at least one year were up 1% while international same-store sales were up 6.6%.

Estimates

Analysts upgraded their earnings projections after the solid quarter, with the current-year estimate jumping 5 cents to .79 per share. The next-year estimate is up 3 cents in the same period to 90 cents, a bullish 14% earnings growth projection.

The Chart

Shares of DPZ rallied in reaction to the strong results, jumping past a key level of resistance at the $7.50 mark. Take a look below.

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