Domino’s, Dunkin’ surge on earnings: A good day for pizza and doughnuts on Wall Street.

It’s a Good Day for Pizza and Doughnuts on Wall Street

It’s a Good Day for Pizza and Doughnuts on Wall Street

Moneybox
A blog about business and economics.
April 23 2015 12:54 PM

It’s a Good Day for Pizza and Doughnuts on Wall Street

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I mean, who wouldn’t want to buy this?

Photo by Rachel Murray/Getty Images for Dunkin' Donuts

Investors are gobbling up stock in Domino’s Pizza and Dunkin’ Donuts today after both companies impressed the Street with unexpectedly strong quarterly sales. Shares of Domino’s are surging roughly 10 percent, or around $10, on the company’s best U.S. same-store sales growth in “at least the last 65 quarters,” according to analysts at Janney Capital Markets. At Dunkin’, the stock has popped 8 percent, or a little less than $4, on sales that were surprisingly unhampered by the miserable New England winter as well as big gains in same-store sales for Baskin-Robbins. 

The current fervor for Domino’s stock is so great that it’s pushed shares to a new all-time high of $109 and change. In the U.S., same-store sales grew 14.5 percent in the first quarter. Abroad, they added 7.8 percent, which Domino’s reports was the 85th straight quarter of international same-store sales growth. Earnings per share and revenue also came in well over expectations. J. Patrick Doyle, Domino’s president and CEO, called it an “outstanding” start to the year.

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Over in doughnut land, Dunkin’s stock is approaching a similar all-time high. Shares of Dunkin’ Brands Group (the official name of the company that makes the deliciously sprinkled doughnuts you see above) peaked in March 2014 right around the $53 mark. Now they’re only a little ways off from that, at $51.73 as of midday trading. Beverage sales, which tend to carry the highest profit margins, were strong, with orders of iced coffee and dark roast coffee leading the way. Dunkin’ also reports seeing “continued breakfast sandwich momentum” in its core breakfast offerings, as well as with the relatively new “croissant donut,” the chain’s answer to the Cronut.

Of equal importance: Dunkin’ has reportedly begun testing a “Deluxe Bacon Donut.” All combatants in the fast-food breakfast wars should look alive.

Alison Griswold is a Slate staff writer covering business and economics.