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Domino's Boosts Digital Ordering

Zacks Equity Research

Domino's Pizza Inc. (DPZ) took a step ahead in terms of digital ordering with the release of a new app for Windows Phone 8. With the addition of this new app, Domino’s now covers over 95% of smartphones sold in the U.S. The latest app offers certain exclusive features for Windows Phone users.

This leading pizza delivery company has been concentrating and investing heavily on technology-driven initiatives like digital ordering to boost its sales over the last three years. Digital ordering is consistently increasing at the rate of about 5% a year.

In 2012, it came out with a new mobile application for Android smartphones and Amazon’s Kindle Fire. Earlier, in 2011, it launched a mobile application for iPhone and iPod touch.

These efforts appear to be paying off as Domino’s generated over $2 billion in digital sales globally in 2012, thus becoming one of the top technology-driven brands across the globe. As a matter of fact, the company’s mobile ordering system together with traditional online ordering accounts for more than 30% of its revenues, globally.

In the recently-concluded first quarter of 2013, digital ordering averaged over 35% of total sales. Mobile ordering continued to gain momentum. Domino’s also expanded its mobile ordering service by launching a new Spanish-language ordering app for smartphones in late 2012 to tap the growing Hispanic customer base in the US. Online ordering thus offers Domino’s a competitive advantage, especially against the smaller players in the market.

Currently, Domino's Pizza holds a Zacks Rank #2 (Buy). Others players in the same industry, which look attractive at current levels include The Wendy’s Co. (WEN), The Cheesecake Factory Inc. (CAKE) and Burger King Worldwide Inc. (BKW), all carrying a Zacks Rank #2 (Buy).

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