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Domino’s Is Doing Just Fine Amid Bruising Delivery War

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Dominos Pizza Stock news

The stock of Domino’s Pizza (NYSE:DPZ) broke out 25 percent on Thursday,  hitting a record high with quite a dramatic style. The pizza chain has managed to beat fourth-quarter forecasts and hike its dividend despite a delivery war raging across the restaurant industry.

Fourth Quarter Results

Comparable sales for delivery improved in the latest quarter and were positive. The pizza delivery company earned $3.13 per share, better than Zacks’s estimate of $2.93, being an increase of 19%, Revenue increased 6% to $1.15 billion which is above forecasts of $1.12 billion. US. same-store sales grew 3.4% and international same-store sales rose 1.7%, excluding currency moves. Domino’s forecasted its 2 to 3 year outlook in the range of 7%-10% for global retail sales growth, 2%-5% when it comes to U.S. same-store sales growth, and 1%-4% range for international sales growth.

The general picture is that the company’s takeout business was “on fire.” More than half of them in the U.S. are using GPS technology, helping even to cut back on the three to six months’ time it normally takes for a driver to learn a route. So no wonder stock price went up as there seems to be quite a bit to rejoice in: both in top and bottom figures, as well as in the strategical aspect.

Competition – delivery wars

CEO Ritch Allison said that rival deliverers’ onslaught of advertising and incentives showed signs of easing, though he warned of “continued headwinds in delivery” and difficulty in forecasting.

The stocks of its rival Papa John’s International Inc (NASDAQ:PZZA) rose 2.3% and Pizza Hut parent Yum! Brands Inc (NYSE:YUM) fell 1% on Thursday.

Third-party competitors have no choice but to keep advertising and Domino’s “might get hit by a few stray bullets along the way” of this firing squad. And there is Grubhub Inc (NYSE:GRUB), DoorDash, Postmates and Uber’s (NYSE:UBER) Uber Eats that are also taking a piece of the delivery pie.

But Domino’s entrenched network of stores, where food-prep protocols are nailed down and often repeated, make for more predictable operations, efficient order turnaround and a stable profit. And Domino’s rivals cannot always count on that sort of consistency due to the fact that their drivers run orders from all kinds of restaurants.

Outlook

The strong earnings come amid a broader debate regarding how to survive in a restaurant landscape where food delivery is more widely available than ever. As technology shapes competition in delivery, Domino’s is set to keep finding new ways to strengthen its carryout business. And by prioritizing delivery over takeouts and drive throughs, what restaurants are doing is in fact steering customers to a higher-cost business, therefore creating a new profit engine. Domino’s aims to continue to “fortress” more markets this year. And fortressed stores are expected to result in cut delivery times by around two to three minutes and consequently, lower delivery costs. So, by the looks of it, it seems Domino’s both built and protected its fortress quite well during these aggressive delivery wars and has good odds of being on the winning side, without getting too bruised.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

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Baidu Is Determined To Show It Has More to Offer

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For two decades, the 21-year-old company has been viewed as an online marketing tool that sells ads through its web search results. But now, the internet company is ready to show it has much more to offer. Last week, it reported fourth quarter earnings for 2020 that beat market expectations and revealed its ambitious plans to enter the EV land. Many years of investing in AI has finally started to pay off as Baidu is finally monetizing the technology used with smart devices. Company’s investments in non-core businesses iarealso helping it defend its core search platform from rivals Alibaba (NYSE: BABA), Tencent Holdings (OTC: TCEHY) and privately-ownedByteDance, whose products are just as popular.

The Chinese tech giant has recovered from the worst impact that the pandemic had on its business as advertising rebounded. Moreover, non-marketing revenue which excludes advertising and includes its cloud and autonomous driving business, grew 52% YoY. Baidu is also tapping into capital markets, including a potential second listing in Hong Kong. Baidu beefs up its autonomous and smart transport technology to tainto the EV market as it revealed back in January it would set up a smart electric vehicle (EV) company with Geely.

As the domestic economy recovers, the company want to tap into into the fast-growing electric-vehicle market to diversify revenue sources.

Figures

Full year revenue for 2020 amounted to $16.4 billion which is flat compared to 2019. Adjusted earnings of $3.08 per share versus analyst estimates of $2.79 per share came after revenues of $4.6 billion versus analyst estimates of $4.7 billion, according to FactSet.

The company provided guidance for the undergoing quarter that was ahead of analyst estimates. Revenue is expected to be in the $4.0 billion and $4.4 billion, representing a growth rate of 15% to 26% YoY, but it does not include potential contribution from its acquisition of live streaming app YY Live. The acquisition was announced last November and is expected to close in the first half of the year. The guidance is also based on the assumption that its core revenue will grow between 26% and 39% on a YoY basis.

EVs

Baidu places a lot of emphasis on its Apollo self-driving technology. Last month, the company formed a strategic partnership with the Chinese car company Zhejiang Geely Holding Group to create a standalone electric car company. Baidu is the majority shareholder. Together, they aim to launch a smart EV model inthree years. Robin Li, Baidu’s CEO Li also said a brand name has been chosen but did not release it.

CNBC has confirmed Xia Yiping, co-founder of bike-sharing start-up Mobike, will be the CEO of the new entity. Xia previously worked at Fiat Chrysler (NYSE: FCAU) and Ford before co-founding a company that was part of China’s boom and eventual bust in shared bike start-ups.

Even Xiaomi is following Baidu’s EV footsteps as the Chinese search engine leader has been basking in newfound investor love as the next EV-maker wannabe. Unlike other EV makers, Baidu’s strategy is akin to Google’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Android for smartphones.

Outlook

Baidu ended an unprecedented year on a solid note and showed it is recovering from the consequences of the global health crisis as its business benefited from an improving macroeconomic environment and the digitalization of businesses and lifestyles. Its commitment on innovation through technology is paying off for the Chinese tech giant. Baidu is well positioned as a leading AI company with a strong foundation to seize the enormous market opportunities in cloud services, autonomous driving, smart transportation, along with all kinds of new opportunities that AI will inevitably bring to the table. The online marketing company chose to be in the right place, at the right time.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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Nvidia’s Game Is On

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Stock Market

On Wednesday, Nvidia Corp. (NASDAQ: NVDA) reported that its quarterly sales topped $5 billion for the first time in the fourth quarter, due to holiday gaming-chip demand and renewed interest in cryptocurrency mining vied with supply shortages. Last week, Nvidia announced it hopes to ease shortages of gaming cards by launching a chip designed for cryptocurrency mining.

Q4 figures

For the quarter ended on January 31st, gaming sales surged 67% to a company record $2.5 billion with full-year revenue also came at a record $7.76 billion, which is a 41 percent increase. On the data-center side, sales nearly doubled to $1.9 billion compared to last year’s figure, while analysts expected $1.85 billion. For the first time, overall revenue for the quarter surpassed $5 billion, which is up 61% compared to $3.11 billion in the year-ago quarter. In its previous quarter, Nvidia also had a quarter sales record as it generated revenue greater than $4 billion.

For the Professional Visualization segment, Q4 revenue was $307 million, down 7 percent from a year earlier with full-year revenue down 13 percent  as it amounted to $1.05 billion.

Automotive revenue for the quarter was $145 million, down 11 percent with full-year revenue was $536 million, down 23 percent from prior year’s figure.

Fourth-quarter net income was $1.46 billion, or $2.31 a share, greatly exceeding last year’s $950 million, or $1.53 a share. Adjusted earnings that exclude stock-based compensation expenses and other items, were $3.10 a share, also exceeding $1.89 a share in the year-ago period.

Q1 forecasts

The company expects about $50 million from CMP sales along with he planning to break out cryptocurrency-related sales in the future. Revenue is forecasted to be in the range between $5.19 billion to $5.41 billion, while analysts had forecast revenue of $4.49 billion on average.

Outlook

Gaming-card supply shortages will likely remain going forward with more and more ‘smart’ products using AI that will increase demand for data-center chips.  Numerous companies across the globe are applying Nvidia AI to create cloud-connected products. The reality is AI services are transforming the world’s largest industries. Everything is rounding up nicely for Nvidia that just reported another record quarter that capped a breakout year for its computing platforms that allowed it to benefit from the “smartphone moment”. Technology is offering an opportunity to change the way businesses across industries interact with their customers and Nvidia positioned itself well to play a big part in that exchange.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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EVs Are Growing in All Directions

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Traditional automakers are transforming their business models to adapt to an all-electric future. General Motors (NYSE: GM) increased its investment to have a zero tailpipe emission line-up by 2035 with the plan to invest $7 billion in electric and autonomous vehicles this year and $27 billion by 2025. Ford Motor (NYSE: F) followed by more than doubling its EV investment by 2025 with $22 billion designated for electric vehicles and $7 billion for autonomous vehicles. The biggest obstacle to electric cars was that they cost much more to build than conventional models but big manufacturers are now putting the money to where their mouths areas they hope to benefit from economies of scale and profit from them. But, the scary costs aren’t stopping anyone, even smaller players who are going full speed ahead as they try to adapt to an electric future.

Affordability –  Chinese budget electric car takes on Tesla

A budget EV by China’s top automaker, state-owned SAIC Motor, selling in China for $4,500 is  a top hit now outselling Tesla’s (NASDAQ: TSLA) tech savvy cars which are not even close when it comes to affordability. The Hong Guang Mini EV is being built as part of a joint venture with General Motors (NYSE: GM). Last month, sales were around double those of Tesla, which was questioned this month over safety issues. While the model clearly lags well behind Tesla when it comes to its battery, range and performance, its convenience and low price have made it one of China’s bestselling “new-energy” vehicles. The Chinese government offers license plates for free to support EV adoption. In many cities, it can take months and even years, to get a license plate for a petrol engine whereas for EVs, it is guaranteed.

Premium – European carmakers are transforming their models

Jaguar Land Rover’s portfolio will be all-electric by 2025. The British carmaker will launch electric models of its entire Jaguar and Land Rover line-up by 2030,  JLR is a smaller company  so instead of focusing on achieving scale, it will re-emphasise Jaguar’s credentials as a luxury brand when it goes all-electric to take advantage of its premium positioning. Although that makes sense from a marketing point of view, it doesn’t make EV-related production costs any less challenging. But, British automakers don’t have a choice because the UK plans to ban the sale of new petrol and diesel cars from 2030. Germann luxury car brand Bentley Motors, owned by Volkswagen (OTC: WWAGY) revealed back in November its range will be fully electric by 2030 so all of Europe is serious about emission-free cars.

Pickups to see the light of day

2021 will also be the year when the world’s first electric pickup sees the light of day. he The U.S. pickup truck market is now dominated by the Ford F-150, Ram 1500, and Chevy Silverado, with smaller contributions from GMC, Toyota Motor (NYSE: TM), Nissan (NYSE: NSANY), and Honda (NYSE: HMC). Even Jeep joined the fray last year, as the Jeep Gladiator arrived in the marketplace. But, things are about to change as besides an electric Ford F-150, the market is about to get richer with highly anticipated models from new entrants such as Rivian, Bollinger, Lordstown Motors (NASDAQ: RIDE), Atlis Motor Vehicles and Hercules Electric Mobility.

Worksport provides update on growing profitable private label sales

Worksport LTD (OTC:WKSP) announced today it has shipped over 1,900 covers to its newest U.S based Private Label customer and that the company is in discussions with two New Private Label customers. Private label customers represent national middle market brands. The #1 accessory of pickups are tonneau covers and Worksport is a well-established manufacturer of both innovative and affordable tonneau covers. But this company is also a game changer due to its Terra Vis solar system that can also be used independently from pickup trucks, allowing the company to expand its customer market. Worksport  received a trademark protection in China along with partnering with Atlis and Hercules to configure its ground-breaking technology for its upcoming pickups. Worksport gathered its target funding of over $4 million more than half a year before the end of its Regulation A offering and the orders and deals just confirm the demand for its unique offerings, including its TerraVis Solar Tonneau Cover and COR battery system.

Outlook

Although Financial Times research shows that EVs will remain significantly more expensive for carmakers to produce than ICE models for at least a decade and affordability is essential for a wider adoption, the market is expanding at a pace that is nothing short of extraordinary. As carmakers fine-tune their production know-how to deliver battery-powered cars which also benefit from a simpler structure and fewer components, costs will go down eventually, and even faster with potential breakthroughs in battery technology.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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