Third-Party Delivery Apps Are Hurting Domino's
Domino's (NYSE: DPZ) has recorded 34 consecutive quarters of same-store sales growth in the U.S., an impressive record in these challenging times for restaurants. But the rate of growth is slowing dramatically, and it may have only itself to blame.
Because of its fortressing strategy (i.e., building out more new locations even if they encroach on an existing store) as well as the rise of third-party delivery apps, the pizza shop is seeing sales weaken. Domino's relies upon its own employees to deliver pizza, viewing them as a competitive strength, but it may need to change its thinking if it wants to halt the slide in sales.
Domino's competitive strength in delivery is being diluted by the rise of third-party apps. Image source: Domino's.
Source Fool.com
