Dominos delivering cars and apps

What do you do if you're a pizza delivery company near Detroit? You design your own pizza delivery car. Cars were created for people so Domino's has decided to build a car designed for pizza delivery. In the US alone Domino's delivers around 400 million pizzas a year. When your drivers make an equivalent 21 round trips to the moon having your own warming oven that can go to 140 degrees and hold 80 pizzas is crucial! There will be 150 on the road in 2016 costing between $20-$25k. It's going to be more expensive than reimbursing drivers with their own car but its great advertising value and a better service for the customer.

Source: http://www.dominosdxp.com/#home/0

Best App in retail

At their annual investor day Domino's also released data showing the popularity of their mobile ordering app. The orange dots are Apple IOS user reviews and blue are Android reviews the average is the black dot. Domino's is the highest rated app in the restaurant industry and with the largest amount of reviews. Domino's dug deeper and found that they have the highest ranked retail app not just restaurants. Their 85 score is ahead of Groupon and Footlocker.

Source: Dominos investor day 2016

Leading franchise profitability
Their investor day also detailed a good forward looking indicator for Domino's, franchise profitability. Franchises are now making $120,000 per store a 3 year payback on store opening. The more money franchises make the more stores will open. With this profitability and the new car I think its time for me to open up a shop....

Source: Dominos investor day 2016

Decisive has a long position in Domino's (DPZ) The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.

CES 2016

CES was just like last year drones, virtual reality and fitness wearables the only difference was the competition seemed to be twice as fierce. Apple and Microsoft famously don't exhibit at CES but Chinese companies are increasing their presence. Chinese exhibitors took up over 1/3 of the floor space up from 1/4 last year. It's tough for businesses but great for consumers.

My new home theatre
Samsung had one of the largest and most well attended booths. They manufacture so many items that Samsung will be one of the leaders in the internet of things. Smartphones, TVs and internet enabled fridges they do it all. Their internet enabled fridge was a hit with three internal cameras you can access images anytime with your smartphone we can finally see who ate that last bit of chocolate. You can also order groceries direct. They also had some very cool wearables including a smart suit (NFC tag) that unlocks your phone when you take it out of your pocket. Thankfully as we are in Vegas Samsung's Wellness belt came in handy automatically expanding your belt after a big meal.

LG showed off a bendable TV screen. It's not commercial yet but in the future you will be able to take a TV with you and roll it up like a newspaper. Oculus Rift finally announced their Virtual reality pricing at $599 (sold at cost) but you will also need to shell out a total of US$1,499 for the PC bundle which can power 3D visuals.

These are the drones you are looking for
Drones were taken to the next level by EHang where the drone can actually carry you inside. All you need to do is sit there and enter the destination in the app. It seems a little scary to me as the cockpit is empty apart from a smartphone stand. Parrot also released a drone with live streaming first person view. They always put on a good synchronised show.

The future of TV viewing
We also got to witness the birth of a global network with Netflix launching in 130 countries nearly every country bar China. Last quarter Netflix users watched 12 bn hours up from 8.25 bn a year ago. Since Netflix launched in Oz BitTorrent usage dropped 15%. Youtube also presented and for the second year in row the most popular entertainers amongst American high schoolers weren't actors or music celebrities they were Youtube stars.

How to make your booth stand out
With 2.47 million net square feet of exhibitors up from 2.2 mn last year it was hard to stand out. GoPro knew the secret to a popular booth serve free beer! Nick Woodman the founder got the crowd chanting GoPro handing out samples of his products unfortunately it hasn't helped the stock. Anything to do with Star Wars was also popular with the force enabled BB8 droid drawing a crowd.  It was great to see Uber and Lyft finally operating at the show. Looking forward to next year.

The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.