If you are a hungry investor seeking a tasty pizza stock who does not fear
the fact that for many, pizza is neither healthy nor wholesome, then you have at
least a couple of choices to consider (DPZ, PZZA, PZZI and CPKI).
For starters, pizza giant Domino’s (NYSE: DPZ)
has 4,470 locations in the US and 4,909 locations abroad – including some even
in places like Haiti. Domino’s latest results offer a microcosm of what US
restaurant and retail stocks face. For 1Q2001, Domino’s US same-store sales fell
1.4% percent compared to 1Q2010 but international same store sales grew 8.3%
and marked the 69th consecutive quarter of international same-store sales
growth. Domino’s total US sales slumped 1% but total international store sales
rose 15.3% (not counting the weaker dollar) while DPZ also shut a net 20 stores
in the US and opened a net 48 stores internationally. Domino’s recently closed
at $24.44 and has a 52 week trading range of $10.66 to $24.79 a share.
Direct competitor, Papa John’s (Nasdaq: PZZA)
had approximately 3,646 Papa John’s restaurants (including 775 in 32 countries)
at the end of 2010. On the surface, Papa John’s seems to have performed much
better in the US than Domino’s as its same-store sales increased 6.1% for North
America and 5.6% for the International market during 1Q2011. Moreover, Papa
John’s posted net income of $16.4 million, a 12 percent increase over 1Q2010.
Papa John’s recently closed at $33.68 a share and has a 52 week trading range of
$22.51 to $34.08 a share.
Meanwhile, Pizza Inn (Nasdaq: PZZI)
operates and franchises 312 pizza buffet, delivery/carry-out and express type of
restaurants both domestically and internationally under the Pizza Inn brand.
PZZI recently reported a 22% net income increase to $442,000 compared to
$362,000 and an earnings per share of $0.06 verses $0.05 in 2010. Pizza Inn’s
revenue also increased 5.3%. Pizza Inn recently closed at $2.33 a share and has
a 52 week trading range of $1.72 to $2.41 a share.
Finally, California Pizza Kitchen (Nasdaq: CPKI)
owns or operates 266 restaurants in 32 states plus 11 foreign countries.
California Pizza Kitchen is facing strong competition in the casual dining
sector and recently delivered results that were not at all tasty for investors.
Specifically, CPKI’s total revenues fell from $156.7 million in 1Q2010 to $156
million in 1Q2011 while same store sales were down 2.1%. Moreover, CPKI’s net
income dropped 15% thanks to higher commodity costs. California Pizza Kitchen
recently closed at $16.88 and has a 52 week trading range of $12.95 to $20 a
The bottom line: To my investor taste buds, it appears DPZ, PZZA and PZZI
offer the tastiest pizza choices for investors while its probably best to skip a meal at CPKI.