The Domino's Pizza Enterprises Ltd (ASX: DMP) share price has surged more than 2.6% higher on the ASX today after its US parent company unveiled a new in-car pizza ordering capability.
What did Domino's announce?
Domino's Pizza has partnered with in-car commerce and service provider Xevo to provide a new pizza ordering platform to be integrated into certain vehicles.
The AnyWare pizza ordering platform will allow customers to find their local stores and call in an order from their in-car system and is to be automatically loaded into millions of cars in the coming months.
The news has seen the Domino's share price charge higher this afternoon as it opens up a potential new avenue for the Australian entity should it prove to be successful in the United States.
How has Domino's performed this year?
Based on yesterday's closing price, the Domino's share price has seen zero net growth so far in 2019 despite climbing as much as 16% higher in mid-February.
The stock is currently trading on a 31x P/E multiple which indicates it may have some growth left in it yet, particularly with pizza sales continuing to climb both domestically and globally.
Domino's currently offers investors a 2.75% dividend yield, which certainly isn't the best on the market, and I'm also wary of investing in the Consumer Discretionary sector – particularly given the shakiness of global economic growth forecasts at the moment.
Markets have been shaken by the ongoing US-China trade war, fears of a hard Brexit and weakening economic data coming out of the US. We've also seen the various yield curve inversions in the US trigger risk-off sentiment across markets in recent months and this was punctuated by yesterday's sharp decline in the S&P/ASX200 Index (ASX: XJO).
I think the Domino's share price could climb in the next 12-18 months, particularly given the lack of listed ASX competitors in the restaurant/fast food business.
For those that aren't as sold on Domino's long-term growth, this buy-rated stock's share price is tipped to explode in the coming years as it capitalises on a $22 billion opportunity.
