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Is that really profitable though? Your article talks about how Pizza Hut is struggling as it switched to digital delivery. Also according your statista link,
by bduerst 7y ago
Is that really profitable though? Your article talks about how Pizza Hut is struggling as it switched to digital delivery.
Also according your statista link, delivery only accounts for 30% of revenue in the pizza industry.
- paulcole 7y agoYour intuition is probably spot on. Dominos stock has been doing terribly and pizza delivery will likely cease to exist because it is a constant money loser.
- askafriend 7y agoThis is...not correct at all. Dominoes stock has been on an absolute tear the past decade. I don't know what charts you're looking at...
- bduerst 7y agoThey've plateaued this past year with negative growth. Is what dominoes was doing a decade ago really relevant?
- mruts 7y agoThey have an excess return compared to the S&P 500 of 200% in the last five years. That’s hardly ten years ago, and the story for Domino’s is still very strong. There’s tons of market share left to eat up and many international opportunities. Pizza Hut has already moved into EM markets (like Africa) and is gradually expanding. Domino’s could do the same thing, and probably better with their superior tech stack.
- sjg007 7y agoI agree. Pizza is a good market. I live in a small town, <8k people, and we have 5 places that deliver pizza, a take and bake, not to mention gas stations and supermarket pizza.
- paulcole 7y agoI was making fun of the guy claiming pizza delivery wasn’t profitable.
- mruts 7y agoDominos has out performed the S&P 500 by like 200% in 5 years. In the last year it returned -2%, so that’s not good, but still a positive story overall.