Domino's (DPZ) to Expand Delivery Fleet With EV Vehicles Rollout
Domino's Pizza, Inc. DPZ recently announced plans to roll out more than 1,100 custom branded 2023 Chevy Bolt electric vehicles at select franchise and corporate stores by 2023-end. Year to date, the company stated that it has surpassed the 800-vehicles count (earlier expected in November 2022) and that the number is increasing.
The company realizes the importance of benefits associated with electric cars, such as long-lasting batteries with the potential for several days of deliveries, no tailpipe emissions, cutting-edge safety measures and lower average maintenance costs (compared with non-electric vehicles).
Apart from the business and environmental tailwinds, an electric delivery fleet also helps with hiring drivers. This paves a path for a new pool of job candidates who may not have their own vehicles.
To support the initiative, the company collaborated with Enterprise Fleet Management, to provide the electric delivery fleet with local hands-on account management, vehicle procurement, finance, telematics systems and maintenance.
Given the extensive list of advantages and the strong enthusiasm and interest from shops and franchisees, the firm is upbeat in this area and expects the effort to spur growth in the future.
Emphasis on Digital initiatives
Domino’s is investing heavily in technology-driven initiatives like digital ordering to boost sales. The company continues to innovate across all aspects of its business — including GPS, e-bikes, AI in-store technology, great food and an evolving digital experience.
By emphasizing on technological innovation, Domino's generated about two-thirds of all global retail sales through digital channels in 2022. With the development of multiple cutting-edge ordering platforms — including those for Apple CarPlay, Google Home, Amazon Alexa and Facebook Messenger — the company earned more than 80% of U.S. retail sales through digital channels in 2022.
During the first quarter of fiscal 2023, the company initiated the roll out of electric vehicles for pizza delivery. Also, enhanced make-line and cut-table technology and AI-enabled forecasting are being rolled out for better matching demand with capacity. The initiatives are likely to enhance the speed, accuracy and efficiency of services going forward.
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In the past three months, shares of the company have dropped 0.6% against the industry’s growth of 5.1%.
Zacks Rank & Key Picks
Domino’s currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Retail-Wholesale sector include:
Chuy's Holdings, Inc. CHUY sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 23.4%, on average. Shares of CHUY have skyrocketed 106.5% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggests growth of 9.9% and 27%, respectively, from the year-ago period’s levels.
Arcos Dorados Holdings Inc. ARCO carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 9.5%. The stock has rallied 47.5% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests growth of 13.4% and 4.4%, respectively, from the year-ago period’s levels.
Chipotle Mexican Grill, Inc. CMG carries a Zacks Rank #2. CMG has a long-term earnings growth rate of 31.8%. The stock has improved 63.1% in the past year.
The Zacks Consensus Estimate for Chipotle’s 2023 sales and EPS suggests growth of 14.2% and 34.2%, respectively, from the year-ago period’s levels.
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