Digital gross sales proceed to develop, in keeping with Domino’s Pizza CEO
The phone is ringing less and less at Domino’s pizza locations, but according to CEO Ritch Allison, demand for the company’s cake remains high.
More than 75% of Domino’s sales are now done through digital channels, up from 70% before the Covid pandemic, and the trend is unlikely to reverse, Allison told CNBC’s Jim Cramer on Thursday.
“If we’re happy, these are the movements that took place during Covid that we don’t believe will return,” he said in a Mad Money interview. “As soon as customers switch to digital orders, they no longer call restaurants on the phone.”
Based in Ann Arbor, Michigan, the company has invested heavily in the business over the past decade to bring it into the technology age.
With the investment, Domino’s expands its number of stores and installs new technology to make ordering and receiving groceries faster and easier. In Houston, the company is testing an autonomous vehicle delivery system in collaboration with Nuro.
“We feel very well positioned from a technology standpoint, and with the market still so fragmented, we believe there is a lot of share to be gained in the overall market,” said Allison.
Dominos reported first quarter results on Thursday morning. Global retail sales rose 16.7% year over year, while sales in the same store in the United States rose 13.4%. Domino’s shares fell 3% on Thursday to trade at $ 415.98. The stock is up 8.48% so far this year.