The digital delivery of food & beverages will be one of the fastest-growing areas of the market in the coming years. In the US, expectations are for up to 7x growth in the next decade. Many ‘disruptors’ have entered the market, such as Uber Eats, Foodora, and Deliveroo, however, we believe that the logistics of delivering food from multiple restaurants in an acceptable timeframe will make their job increasingly difficult. Domino’s, on the other hand, is in the business of delivering food quickly. Their goal is to achieve “3 and 10” – 3 minutes cook time, and 10 minutes delivery time. Domino’s superior delivery ability should allow them to capture significant market share. In the video below, we examine Domino’s most recent results, and how their plans to move beyond home delivery to deliver to anyone, anywhere will drive growth into the future.
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Paul joined Fidelity in London in 1997 as an Investment Analyst, before returning to Sydney in 2003 to establish Fidelity’s Australian equity team. Paul holds a Master of Finance from the London Business School
There does not appear to be much doubt that there is future growth for Domino's. The problem is, and what is not addressed in the video, is what one should be prepared to pay for it. The market obviously thinks a lot less now than 12 months ago.