Domino’s taps four investment themes to double revenue in 6 years

Domino’s taps four investment themes to double revenue in 6 years

Earlier this week, we discussed how Pizza Hut will be digging deeper into our Guilty Pleasure tailwind by expanding its offering to include the delivery of beer. Today, we have Domino’s Pizza sharing that it looks to deliver significant growth as it expands its footprint. The details are below, but with expansion in India and other emerging markets, Domino’s is clearly tapping into our Rise of the New Middle-class investing theme and using our Digital Lifestyle to do so.

While many think of it as a pizza company, with some 65% of its US business digital in nature we have to wonder how long until Domino’s formally removes “Pizza” from its name the way Apple did with “Computer” and Starbucks did with “Coffee.” Those name changes signaled a major shift in those business models, and Domino’s is already feeling some lift from our Clean Living investing theme with its gluten-free crust here in the US. that signals flexibility on the company’s part when it comes to catering to changing food preferences. Odds are that Domino’s will be serving up more than just pizza as it looks to crack the various emerging markets.

Domino’s Pizza, Inc. unveiled ambitious growth goals during its 2019 Investor Relations Day on Thursday. The Ann Arbor, Mich.-based pizza chain — which currently includes 15,300 stores globally — expects to grow by nearly 60 percent over the next six years, with a target goal of 9,700 new stores by 2025. That goal would nearly double the company’s growth rate of 5,260 stores over the past six years. Domino’s is also projecting $25 billion in annual sales globally by 2025 — a number that doubles the pizza chain’s fiscal 2017 sales of $12.25 billion

Fortressing. Domino’s execs spoke a lot about “fortressing” — increasing the number of restaurants in the same market — as a strategy for strengthening dominance. The company cited a fortressing attempt in India where they forced out a competitor. In response to concerns that Domino’s would be competing with itself and therefore same-store sales would suffer, the company said “order count requires capacity,” meaning that they are looking to the long-term effects of fortressing.

· Technology. As a technology leader, Domino’s is not planning on slowing down anytime soon.

“[The company] is now more than 65 percent digital in our U.S. business,” Allison said. Domino’s will be creating a “Tech Garage” in Ann Arbor that will serve as a technology innovation laboratory, where team members will work on and roll out customer-facing and back-of-the-house technology, including a next-generation point-of-sales system.

· International growth. Domino’s sees growth potential of 2,000 stores in the U.S. over the next six years. But even more growth will occur abroad, with unit expansion potential of 6,500-plus locations in the company’s largest international markets alone by the end of 2025.

Source: Domino’s plans to grow in size by 60 percent in next six years

Pizza Hut expands beer delivery to seven states

Pizza Hut expands beer delivery to seven states

There are several food items that are hallmarks of American culture – hamburgers, hot dogs, and the combination of pizza and beer. Guilty Pleasures one and all, and in what can only be described as a sea change moment, Pizza Hut, which is owned by Yum Brands (YUM), is embracing (finally) the delivery of pizza and beer. If you’ve experienced Domino’s Pizza, Papa Johns or even Pizza Hut you know it used to be two very different tasks — order the pizza and make sure you have enough beer to go along with it (as well as some wine as well beverages for the under drinking age folk).

Perhaps it has to do with its revenue being pressured, but Pizza Hut is grabbing our Guilty Pleasure investing theme by the horns and doubling down, partially combining those two tasks to capture incremental revenue dollars by offering beer convenience. For some of us here at Tematica, that is a step in the right direction, but others would like to see them include wine as well. Baby steps is what I have to say. Now to see what the beer selection is…

More than a year after first testing beer delivery in Arizona, Pizza Hut said Monday it will expand the pilot program to 300 restaurants in seven states by mid-January.

“As the official Pizza Sponsor of the NFL, we’ve been celebrating football fans all season long, so it only makes sense for us to bring more customers the beloved combo of pizza and beer ahead of the Super Bowl,” chief brand officer Marianne Radley said in a statement. “We are proud to be pioneers of beer delivery and are well-poised to take on more markets in the coming year.”

Customers will be required to prove they are of legal drinking age at the time of delivery by showing a valid form of identification and completing a form for the restaurant’s records, the company said. Online orders that include beer will feature a pop-up prompting users to confirm they are of legal age.

In May, when beer delivery expanded in California and Arizona, the prices ranged between $3 and $4.50 for two packs and $5.99 and $10.99 for six packs.

Over the past year, Pizza Hut has worked to revitalize the brand through value promotions and a focus on growing delivery and carryout-focused restaurants.

Source: Pizza Hut expands beer delivery to seven states

Papa John’s Confirms the Appification of TV Is Underway

Papa John’s Confirms the Appification of TV Is Underway

The pizza industry has been one of the early adopters of digital and mobile technology compared to the rest of the restaurant industry with  Papa John’s (PZZA) at the forefront. This new order app on Apple’s tvOS powered Apple TV  confirms the sea change that is upon when it comes to TV into a consumption + gaming + digital entertainment platform. It’s not lost on us that now one doesn’t need to get off the couch to order a pizza, but we see that as the intersection of our Connected Societ, Cashless Consumption  and Fattening of the Population. One more step closer to Disney’s (DIS)  WALL-E.


Papa John’s knows a delicious pizza goes well with marathoning your favorite shows by way of the Apple TV. That’s why the pizza giant has launched a new app to let you order, customize and pay a pizza order directly from the Apple TV itself.

The new app actually beats Domino’s to the punch, a surprising turn of events given Domino’s “emoji” ordering and the Xbox ordering campaign launched a while back. The fact that Papa John’s got to Apple TV first is a milestone for the company in addition to the fact that it was the first pizza chain to offer up digital ordering back in 2001 and the first to introduce mobile ordering back in 2007.

Source: The new Papa John’s app for Apple TV makes ordering a breeze