MENU

Domino’s Pizza Enterprises Ltd workers to stay on fast food industry award

Domino’s Pizza Enterprises Ltd (ASX: DMP) have made an announcement this morning about the wage agreement for Domino’s workers.

The company had been looking to get approval of a new Enterprise Bargaining Agreement (EBA). However, today the pizza giant announced that Australian employees will remain on the Fast Food Industry Award.

Nick Knight of Domino’s said that since January the award has provided certainty and stability to team members and franchisees with labour costs within forecasting, which includes paying employees weekend and public holiday penalty rates.

Domino’s said that the wages on the award were similar to those in the proposed EBA, and today’s announcement was not one driven by cost, but to eliminate uncertainty.

Mr Knight said “We are proud to be the first large company in our industry to be on the Modern Award, which ensures Domino’s is a rewarding place to work – whether people are looking for their first job or are hoping to build a career, Domino’s can help pave the way.

“We were prepared to pursue a new EBA because it provided additional benefits for employees, which was supported by our team members in a ballot earlier this year.

“We are still strongly committed to achieving additional benefits and security for our employees but believe this can be achieved more efficiently through input into the current four-yearly review of the Modern Award being conducted by the Fair Work Commission.”

Foolish takeaway

The sooner Domino’s can put this wages story to bed the better. It has been a continuous bad news cycle for the company, so hopefully it can draw a line under this.

The market appears to like the news with the share price up 1.43% today.

If Domino’s can achieve its long-term growth aspirations of higher profit margins and more stores then it could be a buy today, but I’m wary at the moment because profit growth has dropped off recently. It’s currently trading at 22x FY19’s estimated earnings.

For now, I’m steering clear of Domino’s and instead I’m looking at one of these top stocks.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!