> Most pizza delivery is an ancillary service to the restaurant itself.
Are you sure? Seems like the restaurant mostly exists for marketing, awareness, and as a place for people to not come in and eat.
90% of Pizza Hut’s orders are deliveries. 65% of Domino’s are deliveries. Over the entire industry, carry-out and delivery account for over 75% of revenue (delivery alone is 30% or so).
Your intuition is probably spot on. Dominos stock has been doing terribly and pizza delivery will likely cease to exist because it is a constant money loser.
They have an excess return compared to the S&P 500 of 200% in the last five years. That’s hardly ten years ago, and the story for Domino’s is still very strong. There’s tons of market share left to eat up and many international opportunities.
Pizza Hut has already moved into EM markets (like Africa) and is gradually expanding. Domino’s could do the same thing, and probably better with their superior tech stack.
I agree. Pizza is a good market. I live in a small town, <8k people, and we have 5 places that deliver pizza, a take and bake, not to mention gas stations and supermarket pizza.
Dominos has out performed the S&P 500 by like 200% in 5 years. In the last year it returned -2%, so that’s not good, but still a positive story overall.
Also according your statista link, delivery only accounts for 30% of revenue in the pizza industry.