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Domino's Boosts Mobile Order Lineup

Zacks Equity Research

In order to expand its mobile ordering line up, the leading pizza company, Domino’s Pizza Inc. (DPZ), has announced its plans of immediate launch of a new Spanish-language ordering app for smartphones. With the addition of the app, Domino’s now covers over 80% of smartphones.

Domino’s is keen on establishing stronger customer relationships by connecting in the language customers are most comfortable with. The new application is primarily intended for Spanish customers having their mobile devices set in their language. The app will facilitate access to the full Domino’s menu for these Hispanic customers together with local and national coupons, ordering flexibility to almost every U.S.-based Domino's store and Pizza Tracker. All facilities will be similar to the English version of the app.

The company added the application, with the upgradation of Spanish-language, to its entrenched mobile ordering lineup. Domino’s currently features the English version for mobile ordering system on Apple Inc.’s (AAPL) iPhone, Amazon.com Inc.’s (AMZN) Kindle Fire tablet and others. The Spanish language apps are now available for free from the App Store on Apple products, Amazon Appstore and Google Play store. As a matter of fact, company’s enormous mobile ordering system together with traditional online ordering accounts for 30% of its revenues.

Recently, Domino's reported third-quarter 2012 adjusted earnings of 43 cents per share, beating the Zacks Consensus Estimate by 2 cents. This also compared favorably with the year-ago adjusted earnings of 35 cents. As of September 30 2012, the Ann Arbor-based company operated around 10,040 franchised and company-owned restaurants in the U.S. and over 70 international locations.

We reiterate our long-term ‘Neutral’ recommendation on Domino’s. However, it carries a short term Zacks #2 Rank (Buy).

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