Walmart (WMT) Brings Restaurant Delivery To Its App With Nationwide Ambitions

• Walmart (NasdaqGS:WMT) is partnering with Inspire Brands to offer Dunkin' food and beverage delivery through Walmart's digital platforms.
• The partnership extends Walmart's delivery app beyond groceries to include restaurant options such as Dunkin' and Subway.
• The companies plan to roll out these restaurant delivery services across the US using Walmart's last mile logistics network.

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Walmart operates retail and wholesale stores, clubs, ecommerce sites, and mobile apps worldwide, which gives it a large base of customers already using its digital channels. This delivery expansion builds on that existing footprint in US consumer retailing instead of creating a new business from scratch.

Beyond the headline: 0 risks and 2 things going right for Walmart that every investor should see.

What Walmart’s Dunkin’ deal really signals about its delivery push

For Walmart investors, the Dunkin' tie up is less about coffee and more about how the company tries to turn its logistics and omni channel investments into the “alternate profit pools” highlighted in the Walmart Narrative. Using the existing last mile network to carry restaurant orders fits the thesis that Walmart can deepen customer engagement and support higher margin services such as advertising and memberships by keeping more activity inside its ecosystem. It also underlines one of the core risks in that Narrative, which is that delivery and e commerce can strain margins if volumes and attach rates do not justify the extra complexity.

If we take a look at the community Narrative for Walmart, we can see how this news fits into the bigger investment story.

The clearest proof point will be future disclosures around US e commerce and delivery economics, particularly how fast delivery related costs trend in upcoming quarterly results relative to growth in services such as Walmart Connect and Walmart+ that ride on top of that same infrastructure.

For the full picture including more risks and rewards, check out the complete Walmart analysis.

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