The low cash flow at Domino’s is a problem because the company is threatened by a variety of competitors, some of which have greater resources.
Domino’s biggest direct competitors these days are not Yum! Brands’ (NYSE: YUM) Pizza Hut but GrubHub (NYSE: GRUB) and UBER EATS. These services are potentially a deadly threat to Domino’s because they can deliver far more than pizza at a competitive price.
GrubHub and UberEats can deliver anything from a fast food burger to a gourmet meal. That threatens Domino’s because there are a now vast number of alternatives to its pizzas that are just as convenient and might sell at a comparable price.Read more