NEW YORK (TheStreet) -- Shares of Domino's Pizza (DPZ) - Get Report are gaining by 13.49% to $133.47 on heavy trading volume on Thursday afternoon, following the release of better-than-expected 2015 fourth quarter earnings.
Before today's opening bell, the Ann Arbor, MI-based pizza chain posted adjusted earnings of $1.15 per diluted share, beating analysts' estimates of $1.10 per share.
Revenue increased by 15.3% to $741.18 million year-over-year and surpassed Wall Street's projections of $706.97 million.
The results come on lower cheese prices and maintained stable demand in the U.S. despite heavy promotions from rivals such as Pizza Hut and Papa John's (PZZA), Reuters reports.
Same store sales climbed by 10.7% during the period, which helped offset the impact of a strong dollar, Domino's said.
The company has outperformed competitors, in part by investing in technology, such as smart watches and digital wallets, which makes it easier for customers to order and pay, Reuters added.
"Clearly, business drivers - such as the ongoing shift to digital-ordering technologies ... and Domino's focus on everyday operational excellence as opposed to being in the "product of the month club" - continue to resonate," Nomura Securities analyst Mark Kalinowski wrote in a note, cited by Reuters.
About 3.7 million of the company's shares changed hands this afternoon, much higher than its average volume of 972,592 shares per day.
Separately, TheStreet Rating Team has a "Buy" rating with a score of B- on the stock.
This is driven by a number of strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, good cash flow from operations, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DPZ