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Domino's (DPZ) Partners With Uber Eats for Delivery Services

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In an effort to drive sales, Domino's Pizza, Inc. (DPZ - Free Report) has entered into a global agreement with Uber Technologies, Inc. (UBER - Free Report) . Following the news, DPZ’s shares increased 11.1% on Jul 12.

This partnership permits U.S. customers to order Domino's products with the help of Uber Eats and Postmates apps. The initial rollout of the partnership will start in the fall in four pilot markets. The company expects ordering through the Postmates and Uber Eats apps to be available nationwide by 2023-end.

Both Domino's and Uber Eats have 27 international markets in common. This partnership can help increase orders from Uber Eats to 70% of Domino's stores around the globe. U.S. Domino’s customers can now place order on the Uber Eats platform, which will be delivered by Domino's.

Shares of Domino’s have gained 15.2% in the past six months, compared with the industry’s 6.2% increase.

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Digitalization to Drive Growth

Domino’s is investing heavily in technology-driven initiatives like digital ordering to bolster sales. In 2022, the company’s digital sales accounted for approximately two-thirds of the global retail sales, which were $11.7 billion.

Moreover, other digital enhancements in terms of ordering, selecting service methods, paying and tipping were implemented to enhance the consumer experience. It continues to aggressively innovate across all aspects of its business, including GPS, e-bikes, AI in-store technology, quality food and an evolving digital experience.

During the first quarter of fiscal 2023, the company initiated the rollout of electric vehicles for pizza delivery. Apart from this, enhanced make-line and cut-table technology, and AI-enabled forecasting are being rolled out to better match demand with capacity. The initiatives are likely to enhance the speed, accuracy and efficiency of services.

During the third quarter fiscal 2021, the company made substantial progress regarding its Carside Delivery. The consistent waiting time-averaged below two minutes, and franchisees and operators have enthusiastically embraced this new service method. Also, the company was successful in bringing in new customers. During the quarter, Domino’s further initiated a pilot version of its new Pulse point-of-sale system to boost the productivity of its stores. Given the ongoing development and evolution of the product, further investments in this direction are likely.

Zacks Rank & Key Picks

Domino’s currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail and Wholesale sector are:

Dave & Buster's Entertainment, Inc. (PLAY - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PLAY has a trailing four-quarter earnings surprise of 6.8%, on average. Shares of PLAY have gained 38.2% in the past year. The Zacks Consensus Estimate for PLAY’s 2024 sales and earnings per share (EPS) indicates a rise of 16.9% and 28%, respectively, from the year-ago period’s levels.

Abercrombie & Fitch Co. (ANF - Free Report) sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 480.6%, on average. Shares of ANF have increased 114.2% in the past year.

The Zacks Consensus Estimate for ANF’s 2024 sales and EPS indicates a rise of 3.4% and 732%, respectively, from the year-ago period’s levels.

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