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Fly News Breaks for July 11, 2019
UBER, GRUB, DPZ
Jul 11, 2019 | 08:36 EDT
Morgan Stanley analyst John Glass said he is not dismissive of the sales risk posed to Domino's Pizza (DPZ) by third-party food delivery aggregators, but his county-by-county analysis of its U.S. stores overlapped against markets where third party delivery is or is expected to be most concentrated leads him to believe that the risk has a "reasonable boundary" of a 1%-2% impact on same-store sales. Using the same data, he concluded that Domino's still has an opportunity to grow its current U.S. store base of about 5,900 to at least 8,000-9,000 units over time, said Glass, who keeps an Overweight rating on Domino's shares with a $305 price target. Publicly traded companies that operate third-party food delivery services include GrubHub (GRUB) and Uber (UBER).