Domino's Pizza Partners With DoorDash for Wider Market Reach

Domino's Pizza, Inc. DPZ has partnered with DoorDash, Inc. DASH for delivery. This collaboration is expected to drive incremental sales by expanding Domino’s customer base while maintaining its in-house delivery network. 

The partnership will integrate Domino’s into the DoorDash Marketplace. This will allow users to order from local Domino’s stores directly through the DoorDash app. Unlike traditional third-party delivery arrangements, Domino’s drivers will continue fulfilling orders, ensuring it maintains control over delivery operations while benefiting from DASH’s expansive reach. A pilot program is already underway in select locations, with a full U.S. launch scheduled for May 2025, followed by an expansion into Canada later in the year.

By tapping into DoorDash’s extensive customer network, Domino’s aims to capture a larger share of the growing aggregator marketplace, which it estimates to be a $1 billion opportunity. The move is particularly strategic for reaching new customers in suburban and rural markets, areas where Domino’s is aggressively expanding its store footprint.

Digitalization to Drive Growth

Domino’s is investing heavily in technology-driven initiatives like digital ordering to bolster sales. Various digital enhancements in terms of ordering, selecting service methods, paying and tipping were implemented to enhance the consumer experience. DPZ continues to innovate aggressively across all aspects of its business, including GPS, e-bikes, AI in-store technology, great food and an evolving digital experience. 

In 2024, Domino’s generated more than 85% of U.S. retail sales through digital channels and expanded its ordering platforms. Increased digital transactions led to higher franchise royalties and fees. 

DPZ Stock’s Price Performance

Shares of the company have gained 10.3% in the past three months compared with the industry’s rise of 2.9%. The company is benefiting from a solid digital ordering system, Hungry for MORE strategy and diversified menu offerings. Domino’s Rewards program has been key to strengthening U.S. performance by increasing customer engagement and encouraging repeat purchases. Also, the focus on strategic partnerships and unit expansions bodes well.

DPZ’s Zacks Rank & Key Picks

DPZ currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI and Sprouts Farmers Market, Inc. SFM

BJ's Restaurants currently sports a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has gained 10.5% in the past six months. The Zacks Consensus Estimate for BJRI’s 2025 sales and earnings per share (EPS) indicates growth of 3.3% and 17.7%, respectively, from the year-ago period’s levels. 

Sprouts Farmers currently holds a Zacks Rank of 2 (Buy). SFM delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 34.3% in the past six months.

The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 12% and 24.3%, respectively, from the year-ago period’s level.

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This article originally published on Zacks Investment Research (zacks.com).

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