This is what drove Domino's monumental sales in the third quarter

Employees prepare pizzas at a Domino's Pizza Inc. restaurant in Detroit, Michigan.
Sean Proctor | Bloomberg | Getty Images

There's "nothing cheesy" about Domino's Pizza's strong earnings report, according to Nomura analyst Mark Kalinowski.

Revenue for the pizza chain grew 16.9 percent in the third quarter versus the prior year, due, in part, to strong same-store sales growth domestically and abroad.

"Domino's posted the best [second-quarter] domestic same-store sales growth of the 25 largest restaurant chains in the U.S. — and now looks poised to do so again in [the third quarter], likely by a wide margin," Kalinowski wrote in a research note Tuesday.

The news sent Domino's shares soaring more than 7 percent to a 52-week high. The stock later pared those gains, but still closed nearly 5 percent higher.

The company said domestic same-store sales rose 13 percent in the latest period, marking the 22nd consecutive quarter of positive U.S. growth.

Internationally, same-store sales grew 6.6 percent for the quarter, slightly above analysts' expectations of 6.2 percent, according to a consensus estimate from StreetAccount. This is the 91st consecutive quarter of international same-store sales growth for Domino's.

"We believe that Domino's particularly took share from Pizza Hut (which reported a [2 percent drop in] same-store sales decline for its third quarter), regional pizza concepts, and mom-and-pop pizza shops," Kalinowski wrote.

He noted that digital ordering, improved product quality and the "Piece of the Pie Rewards" loyalty program were driving factors for Domino's growth.

"Going forward, the transition to digital ordering technologies likely will remain in Domino's favor, especially at the expense of smaller chains and independents," he added.

In addition, Kalinowski said that the company has excelled at creating marketing that resonates with consumers and has remained focused on its brand.

"With all of these likely to remain business drivers beyond the short term, Domino's U.S.'s likely largest challenge in terms of same-store sales growth may simply be lapping difficult comparisons," Kalinowski wrote. "That said, the 13 percent number posted for third quarter 2016 did lap a tough 10.5 percent figure from the year-ago period, showing that this most recent quarterly showing was not achieved 'on the cheap.'"