Domino’s to list menus on Uber Eats: ‘worth every penny to its stock’

Domino’s Pizza Inc (NYSE: DPZ) printed a year-to-date high this morning after partnering with Uber Eats.

Jim Cramer reacts to the announcement

On Wednesday, the pizza chain said it will start listing its menus on Uber Eats this fall. Initially, customers in select markets only will be able to order Domino’s via the food delivery app.

By the end of the year, though, the partnership will go live nationwide, as per the press release. Reacting to the stock market news, famed investor Jim Cramer said today:

This deal with Uber Eats is just amazing. I think this is worth every penny to Domino’s stock because this is a new, fantastic source.

At writing, Domino’s stock is already up more than 35% versus the start of June.

Domino’s to list menus on Postmates as well

Note that Domino’s has a long-running history of not working with food delivery apps even though its rivals have been on them for years.

But today, the pizza chain said it will also list its menus on Postmates that Uber Technologies bought for $2.65 billion in 2020. On CNBC’s “Squawk on the Street”, Cramer added:

This is just a game changer that everybody’s been waiting for. Domino’s has one-third of pizza delivery despite having nothing like this.

The multinational is scheduled to report its Q2 earnings next week. Consensus is for it to earn $3.03 a share this quarter versus $2.82 per share a year ago. Wall Street currently has a consensus “overweight” rating on this food stock.