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Domino's share price still soaring, along with US gas prices

Domino's share price — up almost $100 since January — continues to leave a contrail as it soars upward, but now it has company in gas prices.

Domino's share price continues to hit new heights. (Photo: iStock)

July 12, 2021

Gas prices may be shooting through pizzeria roofs nationally, but for the most part so are pizza brands' share prices, and that holds doubly true for Ann Arbor, Michigan-based, Domino's Pizza, with a share price that just keeps cranking toward the stratosphere. At the close of markets last Friday, Domino's share price had again ticked up another nearly $10, rising from $467.93 the previous Friday's close to $477.56 July 9. For some perspective on that, consider the fact that year-to-date, the pizza powerhouse's share price has grown $98.06 – not too shabby for about six months' time.

Still, Domino's was not alone in its ascendancy last week, with Louisville, Kentucky-based competitor, Papa John's also turning in a good week's work with investors, climbing $6.48 in value over five days' trading to close Friday at $111. And at Pizza Hut parent and multi-QSR company, Yum Brands, investors also showed some love as the brand increased its share value last week to close at $118.56.

The only publicly traded pizza stock that floundered slightly last week was Pizza Inn and Pie Five parent, Rave Restaurant Group, which lost a nickel in value over the week to close Friday at $1.43.

Vehicle fuel

Despite that mostly good news on the pizza investor front, the entire delivery-dependent pizza restaurant industry has got to be feeling the squeeze of the nation's ever-growing gas prices, which came in at a hefty $3.15 this morning for a gallon of regular, according to the American Automobile Association. In fact, AAA said all-time high gas demand nationally is just fuel to the fire that is continuing to increase the national average price for the commodity.

New data from the U.S. Energy Information Administration showed gas demand jumped from 9.17 million barrels per day (b/d) to 10.04 million b/d last week alone. The estimated rate, which will likely be revised in a few months after verified data is available, is the highest weekly gas demand estimate released by EIA since 1991 and only reflects one day of the Independence Day holiday weekend.

Higher demand and a 6.1 million barrel decline in total gas stocks last week have also pushed pump prices higher. If these trends continue, while the price of crude remains above $70 per barrel, AAA said that Americans can expect gas prices to continue climbing as the summer driving season continues to put more vehicles on the road.

Across the nation, the largest gas price increases last week were topped by the states of Utah and Alaska, which both saw fuel prices soar up 11 cents a gallon. Other top states for weekly increases were Idaho (up 10 cents), Indiana (up 9 cents) and Wyoming (up 8 cents).

Today's $3.15-per-gallon price for regular unleaded is up 7 cents from a month ago, but 95 cents from a year ago at this time. Mid-grade ($3.49) and premium ($3.77) followed the same upward trend, while the gains were less marked for diesel ($3.27) and E85 ($2.65).

Cheese

In Chicago last Friday, cheese barrels closed at $1.58, while 40-pound blocks ended at $1.73. Both categories gained in average price paid last week, with barrels up 6 cents on average to $1.56 and blocks up 15 cents to $1.69.

Cheese sales have picked up in the Eastern and Midwestern regions, while Asian exports continue to keep Western producers busy. Cheese supplies are mixed from balanced to tighter, week to week, and the U.S. Department of Agriculture reporting that production has been very busy.

Still, labor shortages are also plaguing this industry as well and the U.S.D.A. said this factor is a growing concern for cheese plant management.

Wheat

Wheat prices were mixed overall, though winter wheat prices were trending lower last week.

September Kansas City hard red winter futures rose 5 cents to $5.93, while September Chicago soft red winter futures fell 3 cents to $6.15. On the Minneapolis Grain Exchange September spring wheat futures were up almost 11 cents to $8.16.

Natural gas

Natural gas spot prices fell at most locations for the seven days that ended on July 7. The Henry Hub spot price fell from $3.72 per million British thermal units (MMBtu) to $3.60/MMBtu over the period.

The price of the August 2021 Nymex contract was down a nickel to $3.596/MMBtu, while the price of the 12-month strip (averaging August 2021 through July 2022 futures contracts) declined 1 cent/MMBtu to $3.42/MMBtu.