Domino’s says there's no link between its share price and a new Sunday surcharge

Joe Raedle/Getty Images

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.