The Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price has received a lot of love of late. Domino’s share price could jump even further, here’s why.
DMP share price
Domino’s focus on tech remains relentless
After posting record FY21 results, Domino’s remains focused on achieving greater operating efficiency with a three-year strategic technology and services partnership with Microsoft Corporation (NASDAQ: MSFT).
The greater efficiency relates to counting the number of steps that kitchen staff take when they make pizzas. And no, they’re not all wearing a Fitbit or Apple Watch.
The pizza chain is using machine learning and data modelling from Microsoft’s Azure cloud service to create an experimental “digital twin” of one of its company-owned stores in Queensland.
As reported in the Australian Financial Review, if Domino’s experiment is successful, it will be replicated across Aussie stores as well as overseas stores where the Aussie Dominos’ company holds franchise rights.
Domino’s is aiming to leverage this technology to achieve the goal of getting pizzas ready in three minutes and delivered within 10 minutes.
That’s fast and a bloody good option if you’re working late and have nothing in the fridge.
My slice on Domino’s
The biggest pizza franchise in Australia continues to win fans.
Whatever happened to Domino’s fellow rival, Pizza Hut?
Domino’s dominated its little brother through investing heavily in its online platform and delivery system. This ultimately enabled franchisees to offer much quicker delivery, which customers love.
The pizza chain was able to pass on the cost savings generated from faster deliveries to offer better value.
And here we are again witnessing the same play as Domino’s strives to cut down the delivery time further.
If Domino’s continues to optimise the customer value offering of cheapest pizzas delivered in the fastest time, I think it will continue to grow over the long term.
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