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Why is Domino's so Cheap?

Why the pizza delivery driver shortage isn’t a deal-breaker. 

Andrew Willis 20 May, 2022 | 4:18AM
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Andrew Willis: Imagine paying for gas costs, insurance and car repairs, all for around a few bucks per delivery, and maybe a tip. It’s no wonder fast-food outlets like Domino’s (DPZ) are facing a nagging driver shortage.

Equity analyst Sean Dunlop says Domino’s is affected by soaring input costs and fuel prices, but we’re also seeing increases in the carryout business, and the company’s working on improving its processes and deliveries per hour to improve the supply side.

Domino’s is also reluctant to partner with the likes of UberEats or DoorDash – but management’s tune on that front appears to be changing. Hopefully, a move to address supply is as successful as when they reinvented their pizza recipe to address demand.  

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Domino's Pizza Inc310.20 USD-1.94Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @AndrewWillisCDN.

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