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SUGAR HIGH

This week, it paid to put your money in pizza, candy, and Coke

Reuters/Rick Wilking
After strong earnings reports, investors are drinking it all in.
  • Matthew De Silva
By Matthew De Silva

Tech reporter

Published This article is more than 2 years old.

If you’re looking for a strong bottom line, maybe try checking your waistline. Three staples of the American diet—pizza, candy, and soda—helped pad the portfolios of investors this week, even outperforming the S&P 500, which set a new all-time high.

On April 24, Domino’s delivered, announcing profits of $2.20 per share. Royalties and fees from US franchisees grew 8%, and those from international franchisees grew 4%. Meanwhile, revenue from selling equipment and ingredients to franchisees increased 7% for the quarter. As Domino’s continues its turnaround, its stock price has soared—since 2010, the company’s share price has increased more than 3,000%. In the first quarter, Domino’s added 200 new stores, 27 in the US and 173 internationally.

The binge didn’t stop there.

In a sweet treat for investors, Hershey announced profits of $1.59 per share (paywall), outdoing estimates of $1.46. The maker of Reese’s Pieces and Hershey’s Kisses purchased Pirate Brands in September to enter the $2.5 billion “cheese puffs market.” Internally, Hershey is expanding, too. The company will add a mint creme Kit Kat to the lineup in December.

Investors were also refreshed by Coca-Cola’s report that net revenue grew 5% to $8 billion in the first quarter. That translated to earnings of $0.48 cents per share. Like Hershey, Coke is branching into new markets. The company plans to expand into the hot beverages through Costa Coffee, which Coca-Cola acquired in January, and Coca-Cola is working on “Coke Coffee” to offer consumers an option with more caffeine, but less sugar.

Though pizza, candy, and Coke sound like the diet of a six-year-old—or Warren Buffett—they’ve been a winning recipe for stock market investors.

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