Domino's Pizza Stock Eyes Best Day Ever After Earnings

Domino's reported better-than-expected earnings, revenue, and same-store sales

Managing Editor
Feb 20, 2020 at 10:30 AM
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A big earnings winner this morning is Domino's Pizza, Inc. (NYSE:DPZ). The restaurant company reported adjusted fourth-quarter earnings of $3.13 per share on $1.15 billion in revenue, both of which topped analyst expectations. Same-store sales also roared past estimates, and the company attributed faster delivery and new promotions as catalysts behind the upbeat corporate report. 

In response, Domino's Pizza stock is up 23.6% to trade at $367.80 this morning, blowing past its April 24 record high of $301.78. DPZ is on track for a seventh straight win and its best single-session gain ever. But even prior to today's breakout, the shares had support in place at their 200-day moving average.

A short squeeze could be fueling additional gains. Short interest fell almost 7% in the most recent reporting period to 3.75 million shares. However, this still accounts for a healthy 9.2% of DPZ's total available float, and 5.5 times the average daily trading volume. 

In the options pits, calls have been dominant. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock boasts a 10-day call/put volume ratio of 2.06 that ranks in the elevated 84th annual percentile, meaning this rate of call buying relative to put buying is unusual.

Echoing this is the equity's Schaeffer's open interest ratio (SOIR) of 0.72, which ranks in the low second percentile of its annual range. In other words, short-term options players have rarely been more call-heavy during the last 12 months. 

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