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25.06.2019

Domino’s Pizza underpays its employees, shares at four-year lows

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The Domino’s Pizza share price has dropped lower today after Phi Finney McDonald announced a class action against the pizza chain operator funded by Therium.

The fast-food chain would defend itself against a class-action lawsuit

Stocks impacted: Domino’s Pizza Enterprises Ltd (DMP)

The suit alleges that Domino’s misled franchisees by telling them not to pay delivery drivers and in-store workers wages as per industry standards. The suit was filed on behalf of Australian employees who were employed as delivery drivers or in-store workers between June 24, 2013 and January 24, 2018. As a reminder, the company posted a 9.2 per cent fall in its first-half net profit in February. The company had also said it expected earnings before interest and tax (EBIT) for fiscal 2019 to be at the lower end of its guidance range of A$227 million to A$247 million. The news on the lawsuit sent the shares down by more than 6%, to four-year lows.

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