Top 5 Food Delivery Stocks to Buy in 2021

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Below you can find the list of the top 5 food delivery stocks for 2021. For our detailed discussion of the food delivery industry and its growth catalysts, go to Top 10 Food Delivery Stocks For 2021.

5. Domino’s Pizza, Inc. (NYSE: DPZ)

Domino’s Pizza, Inc. (NYSE: DPZ) is a Michigan-based pizza franchise that was founded in 1965 by Tom Monaghan and James Monaghan. Pizzas are the primary focus of the company, but it sells other foods like pastas, sandwiches, beverages and desserts as well. The franchise has operations in 83 countries and more than 5,000 cities. It has more than 15,000 stories, predominantly in the US, the United Kingdom and India. The company offers a 30-minute guarantee on pizza delivery in India, China, Mexico, Vietnam and Columbia. 

Domino’s Pizza has a market cap of close to $14.5 billion and posted $4.14 billion in revenue in January 2021. The company kept the menu simple for the first three decades of its founding, only offering two pizza sizes and one soft drink option to keep delivery smooth. However, as competition from other fast food brands heightened, it expanded, investing millions of dollars into new pizza products, like deep pan pizzas that were then adopted by other brands. The extra-large pizzas were also a first in the industry, with Domino’s leading this charge. 

Citi, a leading global financial services firm, last month started coverage on Domino’s stock with a Buy rating. It identified several growth factors as the reason behind the decision, even as the food delivery benefits of the pandemic fade across the market. Baird, another investment banking firm, last month said it had advised investors to keep faith in stocks that could continue the operations momentum gained in 2020 through to 2022, identifying Domino’s Pizza as one of the stock options that had the potential to deliver on this promise.

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