X Domino's Pizza (DPZ) is testing GPS-tracking technology and expects to retain drivers as a broad swath of restaurant chains — from fast-food icon McDonald's (MCD) to fast-casual favorite Panera Bread (PNRA) — explore or ramp up delivery.
Just this week, McDonald's said it is expanding its delivery partnership with Uber and will launch home delivery in the U.K. in June. Panera, which is being bought by JAB Holding, said it will hire 10,000 new employees, with about three-quarters of them being delivery drivers.
Addressing the growing demand for drivers, Domino's CEO Patrick Doyle said during a conference call with analysts that the company's drivers will be "more consistently busy and receiving tips at Domino's than working somewhere else."
Shares of Domino's were up 2.5% to 185.55 on the stock market today, retaking their 50-day average on strong quarterly results, but off session highs of 188.85.
Rival Papa John's (PZZA), which reports Tuesday, edged up 0.45%, and McDonald's added 3 cents.
Domino's Q1 EPS jumped 42% to $1.26, beating Wall Street forecasts by 10 cents, as sales climbed 16% to $624.2 million, above views for $615.85 million. Same-store sales leapt 10.2%.
The results come after Domino's stock lost 5.8% on April 7 on a report from M Science that forecast that U.S. first-quarter sales gains would come in "well below the rough consensus estimate," according to CNBC.
Instinet analyst Mark Kalinowski, in a research note before Domino's earnings, had also expressed caution about Domino's sales. He cited what he said appeared to be "rather robust" discounting at Yum Brands' (YUM) Pizza Hut last month, when the NCAA basketball tournament took place. Slower sales in the U.K. and Australia were also concerns.
As other fast-food restaurants fought each other on discounts and cheaper groceries discourage eating out, Domino's last year largely remained above the fray, putting up solid sales and EPS figures.
Customers are already used to ordering pizza over the phone, so Domino's mobile ordering platform has worked particularly well as other restaurants try to digitize ordering and the experience inside their locations.
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