#Dominos stock drivers
#Dominos stock driver
#Dominos stock free

#Dominos stock drivers

Until Domino's can stabilize its delivery drivers or significantly change customer behavior from delivery to carry out orders, expect its stock to stay cold and soggy. Meanwhile, the company is in the midst of transitioning leaders current CEO Ritch Allison will retire on April 30. The pizza chain's facing unprecedented challenges to its delivery services as the labor market tightens and gas prices reach historic highs. Can Domino's stock deliver again?ĭomino's stock is down about 30% from its 52-week high in late Dec. It later evolved to delivery to your car within two minutes of ordering online, and contributed to Q4 2021's 10% year-over-year growth in carryout same-store sales, according to management. Whether or not those new initiatives will drastically change consumer habits is yet to be seen, but Domino's previously found success with its 'Domino's Carside Delivery' program, which started during the height of the pandemic as a contactless carryout option. Beyond the aforementioned carryout tips program, the company plans on experimenting with lower prices of popular menu items when the customer chooses carryout over delivery. The program is available to investors for. Management believes that its previous digital investments create an opportunity to drive customers toward carryout. directly through Dominos Pizza Transfer Agent, Computershare Investor Services under the Direct Stock Purchase Plan. retail sales occurred via its digital channel, and its loyalty program 'Piece of the Pie' had 29 million active users, and 70 million customers enrolled. More than any other pizza chain, Domino's focuses on its digital ordering channels and loyalty rewards.

#Dominos stock driver

Why Domino's delivery driver shortage might not matter

#Dominos stock free

In fact, the company ran a 'Surprise Frees' ad campaign in 2021 that gave away $50 million in free food to its online-ordering customers as a way of highlighting the annoyance of surprise fees from third-party delivery apps. The company won't turn to third-party delivery apps like DoorDash to UberEats to solve its biggest headache because management vehemently opposes them. Notably, the deal runs through May 22, perhaps signaling that the company expects its delivery driver problem to continue until at least then. The 'carryout tips' promotion gives carryout customers who order online $3 toward their next order. For comparison, its smaller competitor Papa Johns (NASDAQ:PZZA) increased its revenue by more than 12%, from $469.8 million to $528.9 million, during the same time period.ĭomino's aims to ease its driver shortages by incentivizing customers to choose carryout over delivery. Still, the lackluster revenue growth looks even more mediocre knowing the company increased its prices by about 3% year over year. Management noted that its fiscal year 2020 contained a 53rd week, so revenues would have risen 6% year over year when factoring in the extra week. Worse yet, management stated driver staffing 'may remain a significant challenge in the near term' and admitted it's impeding its 'franchisees' ability to take and service all of the orders coming into our stores' on its most recent earnings call.ĭomino's delivery driver shortage contributed to its total fourth-quarter revenue falling 1% year over year. Management blamed a tight labor market, rising wages, and the Omicron variant on its recent earnings call for the driver shortage. However, the company can't find enough delivery drivers and that was before gas prices recently spiked to historic highs. No company knows that better than Domino's: Delivery makes up two-thirds of its sales. Let's face it: Americans love their pizza, particularly when it's delivered. Driver shortages and surging gas prices don't mix While the company has implemented short-term measures to try to solve its biggest problem, here's why investors should be concerned that the world's largest pizza chain won't be able to turn around its struggling stock anytime soon. All Rights Reserved.Recent events have left Domino's Pizza (NYSE:DPZ) struggling to deliver its pizzas to its customers. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc.

Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes.