The pizza legend is kinda ignoring delivery
Toss some mozzarella on the wounds... Domino's shares ended the day up 5%, but it's stuck in the middle of 2 wars right now: #1 is the "The Pizza Wars." They caused the carb-packed chain's quarterly sales to slow to just 2.4% growth. Here's how the competition and their stocks are doing this year:
#2 is The Delivery Wars... Domino's is stuck in them too. Postmates, DoorDash, GrubHub, and Uber Eats are delivering pizza — and gyros. And quinoa salads. And late-night grilled cheese. The optionality of 3rd party delivery apps are snagging loyalty from hangry 20-somethings. The Domino's faithful like to mix up dinner every now and then.
Search for your profit puppy... Domino's profit-driving revenue source is “carryout.” That's the same thing as takeout or pickup, but Domino's CEO dropped the term 17 times on the earnings call. Carryout makes up 45% of Dom's sales and is more profitable than delivery because they don't have to pay a delivery driver. The CEO's plan for more carryout is why investors bought up Domino's shares Tuesday.