Domino’s Pizza links up with Uber Eats

Article Excerpt

Domino’s is now reversing its long-held stance against working with third-party food-delivery companies in the U.S. That bodes well for the company’s sales—and future share price gains for investors. DOMINO’S PIZZA, $392.33 (New York symbol DPZ; TSINetwork Rating: Average) (www.dominos.com; Shares o/s: 35.3 million; Market cap: $13.9 billion; Dividend yield: 1.2%), has signed a deal with Uber Technologies to list its menus on the ride-share company’s Eats and Postmates food-delivery apps. Domino’s menu will begin appearing on Uber’s apps in Las Vegas and three other U.S. markets this fall, with the rollout expected to extend nationwide by the end of this year. Uber will market Domino’s menu across 70% of the pizza chain’s locations, or 14,000 restaurants. Notably, Domino’s Pizza customers will order Domino’s products through Uber’s food delivery apps—but Domino’s and its franchisees will handle the delivery with uniformed Domino’s drivers. All in all, Domino’s believes that the Uber Eats deal will give it access to “millions of new customers” who are loyal to Uber Eats. Domino’s…