Domino's Speeds Up Online Ordering - Analyst Blog

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Domino's Pizza Inc. ( DPZ ) is on track to make its already established online ordering platform quicker and more customer friendly. The enhanced system will enable customers to save information and place their orders in as little as five clicks or about 30 seconds.  In fact, customers can save their favorite order, payment information and address and then click on the 'Your Easy Order' and 'Your Recent Orders' sections in the future to reorder in quick time.

The enhanced online ordering platform could not have come at a better time as the fall season is just round the corner. To capitalize on the seasonal opportunity, Domino's is set to give away $10 gift cards, 100 per day, to those who create a pizza profile and order through it before Dec, 01.

This leading pizza delivery company has been investing heavily in technology-driven initiatives like digital ordering to boost its sales over the last three years. Digital ordering is consistently increasing at the rate of about 5% a year and management expects to achieve more than 50% of total sales from it over the long term.

Domino's has been regularly launching new apps to boost its digital ordering platform. In June, it released a new app for Windows Phone 8 with certain exclusive features. With the addition of this new app, Domino's was able to cover over 95% of smartphones sold in the U.S.

In 2012, it came out with a new mobile application for Android smartphones and Amazon's Kindle Fire. Domino's also expanded its mobile ordering service by launching a new Spanish-language ordering app for smartphones in the same year to tap the growing Hispanic customer base in the U.S. In 2011, it launched a mobile application for iPhone and iPod touch.

These efforts appear to be paying off as Domino's generated over $2 billion in digital sales globally in 2012, thus becoming one of the top technology-driven brands across the globe. As a matter of fact, the company's mobile ordering system together with traditional online ordering account for more than 30% of its revenues, globally.

Digital ordering thus offers Domino's a competitive advantage, especially against the smaller players in the market and management remains steadfast in pursuing it.

Currently, Domino's Pizza holds a Zacks Rank #2 (Buy). Others players in the industry, which are similarly placed include The Wendy's Co. ( WEN ), CEC Entertainment Inc. ( CEC ) and Burger King Worldwide Inc. ( BKW ), all carrying a Zacks Rank #2.



BURGER KING WWD (BKW): Free Stock Analysis Report

CEC ENTERTANMNT (CEC): Free Stock Analysis Report

DOMINOS PIZZA (DPZ): Free Stock Analysis Report

WENDYS CO/THE (WEN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BKW , CEC , DPZ , WEN

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