Apple Watch Provides Big Opportunity For Pizza Restaurants
Sozzi believes that digital smartwatch orders will improve the efficiency of the pizza business.
Some restaurants are ahead of the game when it comes to digital ordering, while others have fallen behind.
Sozzi discussed three major names in the space and how well they are positioned to capitalize on the launch of the Apple Watch.
Domino's Pizza Inc (NYSE: DPZ)
About 25 percent of Dominos' sales are already coming from smartphones, and another 25 percent are coming from other digital sources.
Dominos is ahead of the game on smartwatch ordering as well, as the company has already launched a smartwatch app that allows pizza ordering and tracking from Pebble and Google Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s Android smartwatches.
Papa John's International Inc (NASDAQ: PZZA)
Papa John's hasn't specifically mentioned plans for an Apple Watch app. However, the company recently began accepting Google Wallet as a payment method and has expressed interest in adding other payment options as well.
According to Sozzi, a planned major overhaul of the company's website and app upgrades coming later this year could include an Apple Watch-friendly app and acceptance of Apple Pay as a payment method.
Yum! Brands Inc (NYSE: YUM)
Yum's Pizza Hut brand has lagged in adapting to the digital age. However, the company has recently done a decent job of playing catch-up.
Prior to Q4, more than 40 percent of Pizza Hut's orders were being placed digitally, and more than half of the digital orders were being placed on the company's mobile app.
Yum! Brands CEO Greg Creed has recently said that the company will be making "significant investment" in digital ordering in the near future.
Image credit: Public Domain
Latest Ratings for AAPL
|Jan 2017||OTR Global||Downgrades||Negative|
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.