Why Domino's Pizza Stock Has Stalled Out
Recent events have left Domino's Pizza (NYSE:DPZ) struggling to deliver its pizzas to its customers. While the company has implemented short-term measures to try to solve its biggest problem, here's why investors should be concerned that the world's largest pizza chain won't be able to turn around its struggling stock anytime soon.
Let's face it: Americans love their pizza, particularly when it's delivered. No company knows that better than Domino's: Delivery makes up two-thirds of its sales. However, the company can't find enough delivery drivers and that was before gas prices recently spiked to historic highs. Management blamed a tight labor market, rising wages, and the Omicron variant on its recent earnings call for the driver shortage. Worse yet, management stated driver staffing "may remain a significant challenge in the near term" and admitted it's impeding its "franchisees' ability to take and service all of the orders coming into our stores" on its most recent earnings call.
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Source Fool.com
