Shares of Domino’s Pizza Inc. (DPZ) rallied 2.5% toward a five-month high in premarket trading Wednesday after The Wall Street Journal reported that the pizza chain has signed a deal with Uber Technologies Inc. to have its menus listed on food-delivery apps.
A Shift in Strategy
In a departure from its long-held stance against working with food-delivery companies, Domino’s recognizes the need to adapt to the changing market. The move comes as rivals Papa John’s International Inc. (PZZA) and Yum Brands Inc.’s Pizza Hut have successfully listed their menus on delivery apps for years.
Embracing a Multi-Billion Dollar Marketplace
Domino’s CEO, Russell Weiner, acknowledges the immense potential of the multi-billion dollar food and pizza delivery market. By partnering with Uber, Domino’s aims to tap into this lucrative sector and expand its reach even further.
Positive Market Response
The positive news has also impacted Uber’s stock, which rose 1.2% ahead of the market open, potentially leading to a 20-month high.
As of Tuesday, Domino’s stock has seen a modest 1.0% increase year to date, while the S&P 500 has gained 15.6%.