Delivery dilemma? Why Domino’s Pizza is watching Uber, Lyft

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Domino’s Pizza fell more than 9 percent after reporting earnings on Thursday, its first earnings miss in over four quarters.

After posting excellent numbers last quarter, Jim Cramer spoke with Domino’s CEO Patrick Doyle to find out if it is now a victim of its own success after delivering such a strong quarter last time.

“I think that certainly has a lot to do with it,” Doyle said.

Domino’s delivered 89-cents per share instead of Wall Street estimates for 98-cents, with revenue that came in lighter than expected. Domestic same-store sales increased by 6.4 percent, down from last year, and international same-store sales were up 7.9 percent.

Cramer has always considered Domino’s to be the king of delivery, but noted the fast success of delivery platforms such as Postmates, Lyft and Uber

While Doyle confirmed that Domino’s is closely watching the delivery competition, he speculated that many of them could be struggling to make money.

“I think that Uber and Lyft have done better moving people around, but we will see. It certainly something we are going to keep our eye on,” Doyle said.

As for direct competition from McDonald’s, Doyle is sticking to pizza. He acknowledged that the burger player has inched into the pizza business, but Domino’s hasn’t felt it in the bottom line.

“At the end of the day, the pizza category is so not consolidated that there is room for us to take share within the pizza category,” he said.

Source: CNBC