What happens next Where's my refund? Best CD rates this month Shop and save 🤑
Domino's Pizza

Domino's won't let anyone else deliver its pizza

Zlati Meyer
USA TODAY

As rival chains consider outsourcing pizza deliveries, Domino's Pizza is taking a hard stand: Only its employees will take those much-desired pies to customers' doors.

The Ann Arbor, Mich.-base pizza giant isn't interested in engaging the services of companies like Uber Eats, DoorDash and Lyft, as many in the fast-food world have done, CEO J. Patrick Doyle told analysts earlier this week

"The efficiency of the delivery process is something we know and understand very, very well. That's not something you’re ever going to see us outsource," he told analysts. "The only way to bring a long-term competitive advantage is to do it yourself."

Domino's Pizza released its fourth-quarter earnings on Tuesday.

Earlier this month, for example, Yum Brands -- which owns KFC, Taco Bell and Pizza Hut -- announced will partner with GrubHub for online orders and delivery. Yum Brands also is investing $200 million in GrubHub. Pizza Hut will, for now, handle its own delivery.

Restaurant consultant John Gordon of the Pacific Management Consulting Group said handling delivery themselves is in the best interest of Domino's, because doing so helps the pizza giant's public face -- and bottom line.

"They've done it themselves forever. They own the connection with the customer. If the pizza is screwed up, they can fix (it)," he said. "There’s no third-party guy running around for 45 minutes."

Then there's the issue of cost. Gordon believes Domino's can make deliveries cheaper than outsourcing the job and paying a tribute of 30% to some service. 

Also relieving pressure on the company to make a big change like delivery: Its fortunes are improving:

The company's net income in the fourth quarter, ending Dec. 31, was $93.3 million with earnings per share of $2.09 on total revenues of $891.5 million for the quarter ending Dec. 31. For the same period the previous year, net income was $72.7 million with EPS of $1.48 on total revenues of $819.4 million.

Domino's handily beat Thomson Reuters I/B/E/S' expected net income of close to $87.9 million.

More:KFC, Taco Bell to expand delivery, online ordering with Grubhub

More:Domino's CEO stepping down in pizza chain shakeup

More:Pizza for breakfast? Nutritionist says these options are more well-balanced than cereal

Domino's has more than 14,800 stores, the company said.

Last month, Domino's announced that Domino's International president Richard Allison will replace Doyle as CEO in July. Doyle has had the job for eight years.

Papa John's founder John Schnatter stepped down as CEO on Jan. 1. His replacement is company president Steve Ritchie.

Follow USA TODAY reporter Zlati Meyer on Twitter: @ZlatiMeyer

Featured Weekly Ad