Domino's Pizza, Coca-Cola Team Up - Analyst Blog
The combination of Domino's' pizza and Coca Cola remains a long-term favorite among customers. Keeping this in mind, the second-largest pizza chain in the U.S., Domino's Pizza, Inc. ( DPZ ) has signed a new multi-year deal with cola giant The Coca Cola Company ( KO ).
Per the agreement, Coca Cola will continue to be the exclusive beverage supplier for all of Domino's 4,932 restaurants across the U.S. The popular beverages supplied will include Coca-Cola and Sprite. The long-term agreement will help Domino's tap the huge customer base of the cola giant, which is expected to boost its volumes.
Domino's has been associated with Coca Cola since Jan 2003. Earlier, the company signed a multi-year contract with Coca Cola, which made it the restaurateur's official beverage supplier.
The restaurateur is consistently trying to drive its pizza sales by conducting strong integrated promotional and marketing campaigns and offering more choices to customers. As part of its promotional offers, the company recently declared a 50% discount on its pizzas. The New Year offer will be exclusively available for customers ordering online and is valid till Jan 19, 2014.
The leading pizza delivery company has also been investing heavily for the past three years in technology-driven initiatives, like digital ordering, to boost sales. Digital ordering is consistently increasing at the rate of about 5% a year and currently the company earns 40% of its revenues from this platform.
Domino's has been regularly launching apps to improve its digital ordering. Recently, the company, in association with Ford Motor Company ( F ), unveiled the Easy Order app which will be made available to customers from mid-2014.
Domino's has a Zacks Rank #3 (Hold). Investors interested in the restaurant industry may consider stocks like The Cheesecake Factory Inc. ( CAKE ) carrying a Zacks Rank #2 (Buy).
CHEESECAKE FACT (CAKE): Free Stock Analysis Report
DOMINOS PIZZA (DPZ): Free Stock Analysis Report
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COCA COLA CO (KO): Free Stock Analysis Report
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