DPZ & Just Eat
How long before this makes its way to the USA and other markets? Domino’s is expanding its exclusive partnership with Just Eat, allowing Just Eat customers across the UK and Ireland to order Domino’s pizza via the platform.
Following a successful 6-month trial in 100, Domino’s has confirmed that it has now rolled out to over 1,000 stores, with a further 200 to be added by the end of 2022. "The initial trial proved that Domino’s is able to reach a larger, previously untapped base of pizza lovers – customers who favor ordering via a single platform such as Just Eat. As a result, the stores involved in the trial have seen a boost in new customer numbers. Why would this not happen in the US? The exclusive partnership means Just Eat will be the only food delivery aggregator to offer Domino’s. Just Eat customers make their order via the app, which is then delivered by the local fleet of expert Domino’s drivers.
We are delighted to announce this extension of our exclusive Just Eat Partnership. Domino’s focuses on offering customers great value for money and great-tasting, piping-hot pizza. As such, it has been great to see how Just Eat users have embraced Domino’s. The trial has shown us how a platform such as Just Eat can help us access new customers. With a clear strategy and our focus on developing our own digital platforms alongside the nationwide Just Eat partnership, we’re confident we are continuing to ensure that nobody delivers like Domino’s. --Elias Diaz Sese, CEO (on an interim basis) of Domino’s Pizza Group plc
We are thrilled to be extending our exclusive partnership to over 1,000 Domino’s stores following a successful trial. As a leading food delivery platform, we’re in a strong position to help such a well-loved pizza brand reach more customers nationwide. The partnership comes amidst a period of rapid growth for Just Eat, signaling our continued commitment to offer our 19 million customers a variety of choices and convenience. --Amy Heather, Strategic Partnerships Director at Just Eat
BYND = 0
BYND released an earnings print even its CEO called disappointing on Wednesday. You can't make this up!
Revenue Retail $56.4M vs. FS $67.8M US $46.2M vs. year-ago $52.4M; International $10.2M vs. year-ago $21.4M; Foodservice $26.1M vs. FS $35.3M; US $16.0M vs. year-ago $15.1M; International $10.1M vs. year-ago $17.5M; Gross margin (18%) vs. FS 0.8%; Adjusted EBITDA margin (89.5%) vs. FS (64.2%)
The company noted that sales declines came amid “a combination of weaker than expected demand in the category and certain customer and distributor changes such as reductions in targeted inventory levels” as well as “limited price reductions in the U.S. and broader list price reductions in the EU” implemented early in 2022 that hit revenue per pound. A stronger dollar was also cited as adversely impacting results as international retail sales fell over 50%. Gross margins in the quarter were recorded at -18%.
CEO comments - “Though this quarter’s results are disappointing, with a sharp decline in revenues and associated knock-on effects across the income statement, including gross margin driven by a challenging macro environment, we are implementing aggressive measures with urgency to positively impact our near-term operations. Our path forward comprises three key actions: significant reduction of our operating expenses; intensified focus on cash flow accretive inventory management activities; and sales and marketing programs that are tightly focused on opportunities and segments that strike the right balance between near-term growth and our most valuable long-term opportunities.”
Management maintained full-year revenue guidance from approximately $400M to $425M, just shy of the analyst consensus of $426.97M. Additionally, the company said that it is targeting cash flow-positive operations within the second half of 2023. A promise I don't see the company making.
