Domino's Pizza Enterprises Ltd. (ASX: DMP) hit a new all-time of $21.22 last week after announcing a half-year statutory profit of $18.6 million, up from $14.5 million in the pcp. The expansion of the Domino's Pizza franchise in Japan began showing a return on the investment it made last year in buying 75% of the business there. The chain has surpassed sales of Pizza Hut, making it the number two pizza franchise in Japan.
It opened 60 new stores globally, of which 25 were in Australia and New Zealand. To better handle the online ordering of pizzas that now make up almost 60% of total sales, a new digital platform was implemented in the half year and European stores were being incorporated into the global online ordering and point of sale system.
Over the past 12 months, the share price has risen 99.7% from $10.43 to $20.83.
BHP Billiton Limited (ASX: BHP) showed us not to feel sorry for miners when they need to get down to work. The expansion of production and sustained higher iron ore prices helped on one side, and cost-cutting measures coming to around $4.9 billion tightened up the bottom line, however at the expense of hundreds of jobs and scaling back of some mines.
It hit a 52-week high of $39.40 with the half-year report showing it raised underlying net profit by 31% to $7.8 billion.
There is talk of returning some capital to shareholders through dividends, yet some institutional investors are wanting share buybacks, seeing those as more efficient ways to raise per share value. The company wants to bring down its debt levels to around $25 billion before implementing special returns. Lower debt interest expenses will increase earnings, which will also improve share price.
Magellan Financial Group Ltd (ASX: MFG), the specialist funds management business, gave its shareholders more reasons to believe 2014 will be a stunning year as the half-year net profit ended up more than double that of the pcp, rising to $36.1 million from $15.2 million.
It hit an all-time high of $13.35 on Friday and is up 81.8% over the past 12 months.
Funds under management (FUM) rose to $21.4 billion, up 45.5% for the half year. Apart from having more funds to invest on behalf of its clients, its fees based on the value of funds being managed will increase and add to revenue, so the bigger the pie, the bigger the management slice.
The stock price has been on an incredible ride up, climbing from about $1.10 in late 2011 to its current $13.35.
Foolish takeaway
I still believe there is more to come for Domino's Pizza and with a winning franchise system expanding into Asia and Europe, the maker of low-priced yet popular fast food can satisfy that urge for growth from investors.
