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Domino's (DPZ) Expands Rewards Program for Loyalty Members

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Leading global pizza delivery company Domino’s Pizza, Inc. (DPZ - Free Report) has recently extended benefit to its loyalty members. The company is granting reward points to loyalty customers irrespective of their mode of placing orders.

Good news is that with this move, Domino’s becomes the first and only national pizza delivery chain to offer such an incentive for orders placed online, via its AnyWare ordering channels, phone or in-store.

Domino’s initially used to lend its loyalty members with Piece of the Pie Rewards points for making online purchases. However, in order to benefit all loyalty customers, the company has undertaken such a pervasive measure.

Launched in 2015, the company’s digital loyalty program — Piece of the Pie Rewards — now includes millions of members. Through point accumulation, customers win free orders from the company on buying over a certain limit. In fact, the program continues to significantly contribute to traffic gains.

It is important to note that the company has been increasingly focusing on technology-driven initiatives like digital ordering to boost sales and navigate the soft trend in consumer-spending, currently faced by the U.S. restaurant space.

The company’s world-class digital ordering platforms include Google Home, Facebook Messenger, Apple Watch, Amazon Echo, Twitter and also ordering via a Pizza emoji. The extended ways to order a pizza has thus positioned the company in the forefront of digital ordering and customer convenience, leaving behind peers like Papa John’s International, Inc. (PZZA - Free Report) and Yum! Brands, Inc.’s (YUM - Free Report) Pizza Hut.

In fact, this emphasis on technology innovation had helped Domino’s reach an estimated $5.6 billion in global digital sales in 2016.

Evidently, Domino’s shares have outperformed the industry over a year. The stock has rallied 24.2% compared with the 7.4% gain of the industry.


 

Additionally, over the past 60 days, the Zacks Consensus Estimate for current quarter as well as yearly estimates have gone up 5.1% and 4.5%, respectively, reflecting analysts’ optimism.

The latest move to extend benefits to loyalty members should further drive traffic and keep this Zacks Rank #3 (Hold) company in a competitively advantageous position. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

A better-ranked stock in this sector includes Bob Evans Farms, Inc. (BOBE - Free Report) , carrying a Zacks Rank #2 (Buy).  The company’s current year earnings estimates have nudged up by 1.4% over the last 60 days. Earnings also surpassed the Zacks Consensus Estimate in each of the trailing four quarters¬¬¬ with an average beat of 11.91%.    


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