Photo: Scott Olson/Getty Images

Domino's Pizza has shunned delivery app giants Uber Eats, DoorDash and GrubHub, and the pizza chain's CEO confirmed the company has no plans of collaborating with them any time soon.

Why it matters: While its No. 1 competitor, Yum Brands' Pizza Hut, has partnered with and taken a stake in the to-go dining app GrubHub, Domino's has banked on its technological investments in delivery and user operations to beat out competition, the Wall Street Journal (subscription) reports.

"Our same-store sales performance for the quarter came in toward the lower end of our 3-year to 5-year outlook, as we continue to navigate through headwinds related to aggressive activity from third-party delivery aggregators. I do not expect this activity to ease in the near term."
— Domino's CEO Ritch Allison, in a Q2 earnings call

By the numbers:

  • U.S. same-store sales growth at Domino's has tapered off, and in the most recent quarter, the company reported 3% same-store sales growth — the slowest in at least 3 years, per Reuters.
  • The results disappointed Wall Street, and shares of Domino's fell more than 8% after the news broke.

Domino's still holds the largest market share in the pizza sector. But as the multinational restaurant doubles down on delivery technology, company executives are more concerned about delivery apps boosting demand for their competitors' food, not the competitors themselves.

  • For instance, valued at $12.6 billion, privately held DoorDash is now worth more than Domino’s, which has a market cap of $10.43 billion.
  • With the exception of UberEats and GrubHub, the delivery apps are backed by venture capital, and as private markets, they have patience the public markets do not.

What they’re doing: From chatbots to drones and its newly expanded driverless delivery cars, the world's largest pizza chain has been upping its investments for the past decade in technologies to give its customers a more seamless experience, and the push internally for innovation only continues.

  • Domino’s has been testing Ford-built, self-driving delivery vehicles in Michigan and Miami for several years. In June, Domino’s announced autonomous-vehicle startup Nuro will make a custom driverless fleet of cars for pizza deliveries in Houston later this year.
  • A Domino’s division in Australia and New Zealand began testing AI cameras that photograph and grade each pizza on different criteria to control quality. Auckland, New Zealand has also been home to pizza delivery by drone for the past 3 years.
  • Domino's has delivered to more than 200,000 nontraditional locations in the U.S., like parks and beaches.
  • The company’s voice-recognition system, “Dom,” has been automating telephone orders in about 40 stores since last year.

The bottom line: Outside delivery companies pose a real threat to about 20-25% of Domino's locations, Morgan Stanley analyst John Glass said in a research note Thursday. This competition could chip away at sales growth by up to 2% for locations open for a year or more.

Go deeper

Natural gas pipeline project cancelled after Supreme Court victory

Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Dominion Energy announced Sunday it has agreed to sell its natural gas transmission and storage network to Warren Buffett's Berkshire Hathaway in a deal valued at $10 billion, including the assumption of debt.

Why it matters: The deal comes as Duke Energy Corp. and Dominion Energy announced they are canceling their plans for the $8 billion Atlantic Coast Pipeline following a Supreme Court ruling. The ruling removed major hurdles for the companies, but "recent developments have created an unacceptable layer of uncertainty and anticipated" for the project.

Trump campaign "strongly" encourages face masks at outdoor rally

Photo: Jabin Botsford/The Washington Post via Getty Images

The Trump campaign will be providing face masks and hand sanitizer for all attendees at an upcoming rally Saturday in Portsmouth, New Hampshire.

  • The campaign said in an email on Sunday that attendees are "strongly encouraged" to wear the masks.

Why it matters: The campaign's first coronavirus-era rally in Tulsa, Oklahoma, was notable for its lack of masks.

Updated 3 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 11,317,637 — Total deaths: 531,729 — Total recoveries — 6,111,910Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 2,852,807 — Total deaths: 129,718 — Total recoveries: 894,325 — Total tested: 34,858,427Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity — Houston mayor warns about hospitals
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Former Trump official Tom Bossert says face masks “are not enough”
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: Sports return stalked by coronavirus
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.