Dragontail surges 20% on back of YUM! deal
While there has been very little positive news within the hospitality industry recently, an announcement yesterday by Dragontail Systems Limited (ASX:DTS) certainly got the market interested with its shares rallying 20%.
Dragontail is revolutionising the Quick Service Restaurant (QSR) and food service industry with its Algo Platform and computer-vision QT quality system that uses artificial intelligence (AI) machine learning.
The Algo Platform uses a sophisticated patented algorithm to optimise and manage the entire food preparation process from order to delivery.
It is the first system in the world to fully automate and streamline the kitchen flow to deliver an immediate and significant return on investment to fast food and quick service restaurants and is currently installed in approximately 1,250 stores.
What triggered a very positive reaction yesterday was news that the company had entered into a Statement of Work with YUM! Restaurants International, Inc for deploying its Algo Platform in Pizza Hut stores for Telepizza Group S.A., a company incorporated in Spain.
Telepizza is the largest Pizza Hut franchisee in the world with over 2,500 stores primarily in Europe and Latin America.
Installation in Telepizza's 943 Latin American Pizza Hut stores is to commence once the testing phase in the first two stores in Ecuador is successfully completed.
Telepizza is a significant pizza delivery business, listed on the Spanish stock exchanges, with a presence in more than 20 countries through more than 2,500 franchised and owned stores, operating in Spain, Latin America and other countries of the Europe.
The collaboration started with a successful implementation of the Algo Platform in two stores in Ecuador following the integration with the POS (Point of Sale), and after a successful completion, will continue to other Telepizza markets in the Pizza industry.
Management anticipates that Algo will maximise efficiency and accuracy in the food preparation, kitchen function and delivery processes.
Dragontail appears to be on a winner given the highly scalable nature of the fast food industry.
The company’s technologies are transferable across most fast food and quick service restaurants, and it was only last week that the group signed a Technology Master Services Agreement, establishing Dragontail and Pizza Hut Asia-Pacific Franchise strategic relationship.
Pizza Hut APAC currently has approximately 3,000 stores in 15 countries.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.