Delivery Wars? Domino's Has a Plan for That
A slowdown in comparable sales is a byproduct of a sensible strategy shift to stay competitive as new rivals like Uber Eats barrel in to metro areas.
Domino’s is girding itself for stepped-up competition.
Photographer: Andrew Harrer/BloombergDomino’s Pizza Inc. didn’t come in hot in the second quarter. The pizza-delivery chain said Tuesday that comparable sales at its U.S. restaurants rose 3% in the period from a year earlier, well below the 4.6% growth analysts had expected.
Shares fell in early trading, and, to a certain extent, that is understandable. But this quarter’s results didn’t leave me with any fresh concerns about Domino’s long-term strategy or its ability to hold its own amid major changes in the U.S. food delivery market. While a 3% increase in comparable sales represents a slowdown in growth for an industry darling, it is still a solid result at a moment when restaurant traffic generally remains so weak.