Domino's Pizza profit falls 9 per cent to $53 million
Fast food giant Domino's Pizza grew sales by 14 per cent in the first half, but its profit has been dragged down more than 9 per cent by higher wages and other costs.
The company on Wednesday reported net profit of $53.3 million for the six months to December 30, compared to $58.6 million a year earlier.
Domino's said total revenue had been boosted by 24 per cent to $702 million from like-for-like sales growth of 3.3 per cent, new store openings and the consolidation of franchisee contributions to an advertising fund.
Meanwhile its profit took a $8.3 million hit from paying higher wages, following several underpayment scandals, and a $52 million expense from the changes to its advertising fund.
Earnings were down 6.8 per cent in Australia, down 25 per cent in Europe but grew 34 per cent in Japan.
More to come