Domino's plans to kill off drive-through fast food as it harnesses digital technology to simplify and accelerate home delivery of a bigger selection of popular eats.
The fast-food group has always been quick to pick up on food trends, adding barbecue pulled beef and chipotle chicken to its menu in recent times. However, it's now targeting the fast-food staples with a planned menu expansion and faster and simpler ordering and delivery.
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Are Domino's stocks too hot to buy?
Domino's Pizza has long been a favourite of Platypus Asset Management, but is it too late to buy into the market darling?
While there were no plans to launch a Domino's burger, chief executive Don Meij revealed the company had dropped "Pizza" from its name.
"It comes down to the licence customers give us to make changes, but we are a leader in this space; there's nobody better," Mr Meij said.
"We have a pretty good track record of putting the customer first; we haven't had a failed promotion in the last few years."
Unveiling a 49 per cent jump in its first-half profit to $43.3 million, Mr Meij said digital technology was threatening to relegate the drive through to history as delivery times fell and more customers opted for the convenience of ordering from home.
Domino's investment in digital technology in Australia, New Zealand, the Netherlands and Belgium is driving double-digit sales growth in these regions. The operation is testing a 10-minute delivery in Queensland. The 10-minute model will be rolled out across Australia within three years.
In March, Domino's will unveil an innovation that is expected to further streamline the digital ordering process to a "single interaction".
Domino's revenue surged 30 per cent to $445.3 million in the six months to January 3. Same store sales in Australia and New Zealand were up almost 14 per cent.
Domino's will introduce its digital platform in Japan, Germany and France this year, including SMS ordering, an iPad app and smartwatch ordering.
"With the launch of our digital platform in Holland, total sales went from 40 per cent online to 70 per cent in just two years," Mr Meij said.
"In just eight months, online orders in Belgium went up by 55 per cent . . . we are rolling out something that has already proven what it does."
Competitors, including Red Rooster and McDonald's, have jumped on the home delivery bandwagon.
However, Mr Meij said those services had not taken customers from Domino's.
Baillieu Holst analyst Josh Kannourakis said technology and the investment by Domino's in improving ordering and delivery services through initiatives like electric bikes were driving sales and profit growth.
He characterised the forecast 38 per cent EBITDA margin within three years as "phenomenal" for a fast-food business.
On the strength of the half-year result, Domino's upgraded its full-year growth forecast for earnings and net profit from 30 per cent to 35 per cent.
The launch of Uber's home delivery service, Uber Rush, in the US as well as the growth of restaurant food delivery services such as Deliveroo reveal the opportunities in this market, as well as the competition.
Mr Kannourakis said it was essential Domino's continued to invest in technology to stay ahead.
"I think they have three to five years of very strong growth, but, after that, they will have to be acquiring growth," Mr Kannourakis said.
Domino's share price soared more than 18 per cent on the back of of its record half-year result before closing 3 per cent stronger at $55.52.
The global operation is targeting a 4250-store network by 2025. By that time, the European business will be more than double the size of the Australian Domino's network in a 2500-strong chain.