Everything is about to change in the restaurant space.
After decades of being dominated almost entirely by pizza brands, the delivery industry is set to explode with the advent of third-party delivery service apps.
In this clip from a recent webcast, Hedgeye Restaurants and Consumer Staples sector head Howard Penney says delivery could end up ballooning from a $30 billion industry to a $200 billion behemoth in five years.
“This is a massive change for the industry,” Penney explains to Hedgeye CEO Keith McCullough.
“Six or seven years ago, people were really skeptical about how much people would consume content on Netflix. In a similar way, delivery is going to be a massive change in consumption and in how people consume food. This is new and is so exciting for a restaurant analyst to have technology come into play.”
Two particular stocks (including GrubHub) are poised to take a huge bite out of that growth, Penney says. One big loser in the paradigm shift? Domino’s Pizza (DPZ).
Click here to watch the entire webcast featuring Penney and Hedgeye CEO Keith McCullough.
