The podcast discusses the enduring appeal of Domino's pizza and the importance of loyalty programs. They also explore the challenges faced by Walgreens in a competitive pharmacy market. Professor Michael Robbins is interviewed about quantitative asset management and the future of AI in investing. They explore the impact of AI on investing and highlight the value of learning and understanding investing in the face of AI threat.
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Quick takeaways
Domino's focuses on key metrics like store growth, cash returns per store, and new store performance to determine success in the franchise business.
Domino's invests in technology to enhance its online presence, improve customer loyalty, and capture direct revenue without relying on third-party delivery platforms.
Deep dives
Key Point 1: Domino's pizza focus on store account growth and cash on cash returns
Domino's pizza's key metrics beyond same store sales are focused on the growth of the store account year to year, cash on cash returns per store, and per new store. These metrics help determine the success of the franchise business, as Domino's is not only selling pizza but also supplies. Despite the complexity of the franchise model, the core business of selling more pizzas remains the primary driver of growth and profitability.
Key Point 2: Domino's investment in technology and collaborations
Domino's is heavily investing in technology and has partnered with Microsoft to enhance its online presence and improve customer loyalty. While partnering with Uber Eats for delivery, Domino's is expanding its reach and visibility. However, Domino's aims to drive customers to order directly from their app instead of using third-party delivery platforms. By enhancing the app experience, improving customer loyalty programs, and providing rewards, Domino's aims to maximize profits by directly capturing revenue without sharing it with intermediaries or aggregators.
Key Point 3: Walgreens Boots Alliance's transition to a more healthcare-focused business
Walgreens Boots Alliance is undergoing a strategic transition to become more involved in healthcare services. This shift is fueled by acquisitions and partnerships, but it comes with increased debt and costs. The appointment of a new CEO with a strong healthcare background, particularly in pharmacy benefit management (PBM), is seen as positive for the company. While the current financial results were below estimates due to factors like reduced COVID-related testing and vaccination, investors are hopeful for a new strategy and potential cost-cutting measures within the changing landscape of the pharmacy industry.
It’s hard to bet against the enduring appeal of everyone’s favorite dinner.
(00:21) Bill Barker and Deidre Woollard discuss: - How Domino’s continues to compete for its share of stomach. - The importance of loyalty programs and the worry of loyalty fatigue. - If Walgreens’s new CEO will keep steering the company toward healthcare.
(17:21) Deidre Woollard interviews Professor Michael Robbins on his new book Quantitative Asset Management and the future of AI in investing.