Shares of global pizza giant Domino’s Pizza (NYSE:DPZ) are up in double digits today after it entered into a major global agreement with Uber (NYSE:UBER).
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Under the deal, customers in the U.S. can now order their Domino’s offerings via Uber Eats and Postmates apps. The deliveries will be executed by delivery experts from Domino’s and its franchisees.
The initial rollout of the deal in the U.S. is anticipated to begin in the fall across four pilot markets. Further, the nationwide rollout on Uber Eats and Postmates is expected by the end of this year. The strategic move means Domino’s, which is already a leader in delivery and carryout pizza marketplaces in the U.S., can now tap a new segment of customers via the order aggregation model.
Impressively, the two companies presently have 27 common international markets and the deal could potentially bring in incremental orders to 70% of Domino’s outlets globally. Further, Domino’s will have Uber Eats as its exclusive third-party platform till at least 2024 in the U.S.
Overall, the Street has a $350.50 consensus price target on Domino’s alongside a Moderate Buy consensus rating. At the time of writing, while Domino’s shares are up 10.3%, Uber shares are trending marginally lower.
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