Here’s How Robot Pizza Delivery Will Make You Rich

I thought the idea was completely idiotic when I first saw it…

We have yet to find a cure for cancer. But thanks to the wonders of technology, you can order a ninth-rate pizza from Domino’s by simply tweeting an emoji.

A couple of years ago, Domino’s went off the deep end with a promotion that would allow their customers to have their favorite pizza rushed to their house by tweeting a pizza emoji to the Domino’s twitter handle.

At the time, I said the Domino’s easy order promotion wasn’t the stupidest thing I had ever seen in my life. But it was close.

Frankly, I’m not sure why anyone would want to eat Domino’s at all—whether it’s ordered by emoji or rotary phone.

But for whatever reason, we found ourselves in the center of a bonafide pizza bull market. Thanks to Domino’s, cheap pizza was thriving. So was the stock.

The numbers don’t lie.

Domino’s Pizza stock has doubled since the beginning of 2015. But it gets even better – shares are up more than 1,000% over the past six years. For reference, the S&P 500 has gained about 75% over that same timeframe.

To be fair, we’ve successfully traded Domino’s stock over the past few years here at the Rude. But I was wrong to blast the company’s emoji-based ordering platform. As it turns out, the Domino’s announcement two years ago was much more than a cheesy marketing ploy. It was the culmination of a complete re-imagination of how the company operates.

You see, Domino’s is no longer your standard fast food giant hocking mediocre pizza. As some experts have started to notice, Dominos is transforming into a tech company.

“The company decided that instead of being a pizza company that had technology, it would become a technology company that sold pizza, with a goal of selling 50 percent of its pizzas through digital sales by 2015,” PC Mag reports. “The next step was to change the infrastructure, which began with the creation of a ‘pizza profile,’ essentially letting customers save preferences, payment information, and location, moving from 25 clicks to five clicks.”

Domino’s made ordering pizza dead simple for anyone with a computer, tablet, or smart phone. Anyone with a busy schedule, hungry kids, or no patience could get a pizza sent their way at the push of a button. No one else in the biz could claim this level of convenience. And it worked!

Remember the company’s goal to generate 50% of its sales from digital sources? It only took five years. As of 2016, Domino’s was racking up $2 billion from e-commerce sales. That’s more than half its revenue.

The amazing Domino’s comeback story doesn’t end here. The pizza king is now venturing into the future with robot delivery.

I’m not joking…

Dominos

“Domino’s has just inked a partnership with Starship Technologies to begin using its ‘personal delivery devices’ this summer in Hamburg, Germany.” Tech Crunch reports. “If all goes well there, Domino’s and Starship intend to bring robot pizza delivery to the Netherlands as well.”

Domino’s joked about driverless cars delivering pizza a couple of years ago. Now management is getting serious about the technology. The Hamburg delivery robots will begin slinging pies within a one-mile radius soon enough.

It doesn’t stop there. Domino’s has also inked a drone delivery partnership with a company in New Zealand. That might sound crazy – but these are the kind of moves we’d expect from Amazon, not Domino’s.

Thanks to its big leap into the tech world, cheap pizza has absolutely crushed the market. But here’s the good news—I think this greasy pizza stock has a lot more room to run.

You can skip the delivery and the pizza emojis on your smart phone if you want. Just don’t forget to order up some of these hot shares…

Sincerely,

Greg Guenthner
for The Daily Reckoning

The Daily Reckoning