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Domino's Strengthens Contactless Delivery Across the US

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Domino's Pizza, Inc. (DPZ - Free Report) continues to strengthen its delivery program. The company’s latest Carside Delivery option is a testament to the same. Notably, this is a new contactless carryout option, which customers can choose while placing a prepaid online order.

Domino's Carside Delivery option is now available in stores across the United States. Dennis Maloney, Domino's senior vice president-chief innovation officer said “Domino's Carside Delivery gives customers the option to stay in their vehicle while a team member delivers their order to them, making for a convenient, contactless carryout experience. It's carryout, delivered.”

Robust Delivery System to Drive Sales

Domino’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. It has started driverless pizza delivery services. To this end, the company has partnered with Nuro — a robotic company for the delivery services. Notably, the driverless pizza delivery services can be only be availed by select residents of Texas.

During the first-quarter 2020 conference call, the company announced that it moved to 100% contactless delivery model across the United Sates. Meanwhile, Domino’s digital loyalty program — Piece of the Pie Rewards — continues to contribute significantly to traffic gains. The company is at the forefront of digital ordering and customer convenience on the back of different ways to order a pizza.

Due to the coronavirus pandemic, most of the restaurant operators are focusing on robust delivery system to drive sales. Moreover, with Internet, digitalization and electronics influencing every facet of day-to-day lives, it is obvious that the restaurant industry has embraced this trend. Foodservice delivery services have contributed significantly to restaurant sales over the past few years.

In the past six months, shares of the company have surged 25.7%, against the industry’s decline of 9.6%.

Zacks Rank & Other Key Picks

Domino’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the same space include Jack in the Box Inc. (JACK - Free Report) , Wingstop Inc. (WING - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) . All these stocks sport a Zacks Rank #1.

Earnings in 2021 for Jack in the Box are expected to rise 22.9%.

Wingstop and Yum China has a three-five year earnings per share growth rate of 11% and 9.5%, respectively.

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