As the competition with third-party delivery service is heated, Domino's CEO Ritch Allison is fighting back against the idea that the pizza chain should outsource its delivery.
Allison has long established that the pizza chain will continue to deliver its own pizza in the United States without the help of Uber Eats or DoorDash, because it will control the quality of its food, but typically has divorced from s topping so strongly about the competition, Domino has collaborated with third-party services in some international markets, leading to mixed results.
"It is crucial that we control the quality and safety of our product versus transfer to some random third parties and then have no sync what happens to the food before it comes to the customer, "said Allison on Wednesday.
CFO Jeff Lawrence said that "aggressive marketing" from third-party services puts pressure on US same store sales in the quarter. Uber Eats and DoorDash launched their first national ad campaigns, and some restaurants that partnered with third-party delivery services have turned to offering free or reduced fee delivery to promote the new service. The pizza chain reported revenue growth of 3.9%. At home, which did not exceed Wall Street estimates of 4.2%.
Dominos shares rose 9% after the company reported earnings that exceeded expectations. The pizza chain earned $ 2.20 a. Stock during the first quarter and beat Wall Street estimates at $ 2.09 per share. Share. And while US retail sales growth was weaker than expected, many investors expected the numbers to be worse.