The share price of Domino’s Pizza has fallen $6, or 9%, since it introduced a Sunday surcharge earlier this month to pay for higher wages.
However, the company says it can’t see a link between the two events.
“Domino’s Pizza Enterprises Ltd has seen no evidence to support comments from unnamed analysts in the press in relation to a link between share price and the recent introduction of a Sunday surcharge,” the company said today.
The shares were trading at $60.87 today, down about $6 since early this month and well down from the year high of $80.69.
The company on January 8 added a 10% surcharge on Sunday orders to help pay for a 25% pay rise for staff.
“The surcharge has received a mixed reaction from customers, and analysts believe it could crimp Australian same-store sales growth, which was tracking at a record 17.7% in the first four months of 2017,” the Australian Financial Review reported.
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