Shares of Domino’s Pizza Inc.
DPZ,
soared 12.1% toward an eight-month high in premarket trading Wednesday, after the pizza chain announced an agreement with Uber Technologies Inc. to have its menus listed the Uber Eats and Postmates food delivery apps. The initial rollout will begin in the fall in select markets, and is expected to be available nationwide by the end of the year. Earlier, The Wall Street Journal reported that a deal with Uber was signed, marking a change from Domino’s long-held stance against working with food-delivery companies, which rivals have done for years. “Now that aggregators are at scale, the next logical marketplace for us to enter is order aggregation,” said Domino’s Chief Executive Officer Russell Weiner. “Our research in the U.S. and learnings from 13 of our international markets has shown us that taking orders using the Uber Eats Marketplace provides access for Domino’s and its franchisees to a new segment of customers and what we believe will be a meaningful amount of incremental delivery orders once it’s widely available.” Domino’s stock has edged up 1.0% year to date through Tuesday, while the S&P 500
SPX,
has gained 15.6%.
