{"id":28012,"date":"2012-03-07T01:04:53","date_gmt":"2012-03-07T06:04:53","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2012\/03\/07\/dominos-a-surprising-new-way-to-profit-from-mobile-technology\/"},"modified":"2012-03-07T01:04:53","modified_gmt":"2012-03-07T06:04:53","slug":"dominos-a-surprising-new-way-to-profit-from-mobile-technology","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2012\/03\/07\/dominos-a-surprising-new-way-to-profit-from-mobile-technology\/","title":{"rendered":"Domino\u2019s: A Surprising New Way to Profit From Mobile Technology"},"content":{"rendered":"

By MoneyMorning.com.au<\/strong><\/p>\n

Back in February, Kris alerted you to the idea of lazy investing<\/a>. He said:<\/p>\n

‘Let’s be honest. If you could find a way of making a lot of money without doing anything, odds are you’d jump at it.’<\/em><\/p>\n<\/blockquote>\n

In the fast food sector, Kris reckoned he’d found ‘…three of the laziest – potentially – moneymaking stocks on the market.’<\/em><\/p>\n

Since Domino’s<\/em> Pizza Enterprises Ltd [ASX: DMP]<\/strong> announced a 23% increase in net profit, the pizza chain’s share price is up 14% in one month…<\/p>\n

<\/span><\/p>\n

Domino’s Enterprises Limited<\/H4><\/center><\/p>\n
\"Domino's<\/div>\n

<\/p>\n

Source: CMC Markets Stockbroking<\/div>\n

<\/em>
\nHow many Aussie businesses have a share price that looks almost unaffected since the GFC?<\/p>\n

The chart looks especially good when compared to other companies in the Consumer Services sector. Look at how franchisee owner Retail Food Group and the recently listed Collins Food Limited, a fast food operator has performed… <\/p>\n

\"charts<\/a>
Click here<\/a> to enlarge<\/div>\n<\/p>\n

Neither company looks like a great investment based on these charts alone.<\/p>\n

And this is why Domino’s could be an investor’s dream in years to come.<\/p>\n

At the time of the profit announcement, the head of Domino’s Pizza said ‘Australia has the highest labour rates in the Domino’s world of 70 countries.’<\/em><\/p>\n

According to the director of Restaurant and Caterers Association, Greg Parkes, Australia’s labour costs account for 44% of total business costs. Compare that to other countries where total wages account for 30% or under of business costs.<\/p>\n

Despite the wage expenses, Domino’s still managed to report a $12.6 million net profit for the start of the financial year. Overall, the company had grown Australian revenue by 8.7%. And if you’re holding the stock, you’ll get a 13-cent dividend.<\/p>\n

Seeing as the company is turning a profit, shouldn’t it just shut up about high labour costs and accept they’re a fact of life when operating a business in Australia?<\/p>\n

<\/p>\n

Control Costs, More Profit<\/div>\n

<\/strong> <\/p>\n

Nope. By alerting the public to the fact that labour accounts for almost 50% of business costs, the company is telling its investors what could erode future profits. And before they let profits slide, the company will do everything it can to protect them. <\/p>\n

In fact, Domino’s is doing everything it can to lower the cost of wages.<\/p>\n

Already it’s implemented automated phone ordering systems. And it’s created an efficient process to order pizza over the Internet.<\/p>\n

And in keeping up with the tech generation, there’s even an ‘app’ to order pizza on your mobile phone!<\/p>\n

In less than six months, Domino’s management reckons digital sales will account for 50% of all orders.<\/em><\/p>\n

Based on that, it’ll come as no surprise to you that Domino’s holds almost 50% of the pizza business in Australia.<\/p>\n

In tough economic conditions, the company is getting creative to keep profits high and keep their hold on the Australian market.<\/p>\n

If you’re an investor, Domino’s is the sort of company you should add to your watch list.<\/p>\n

Shae Smith
\nEditor, Money Morning<\/strong><\/p>\n

From the Archives…<\/em><\/strong><\/p>\n

The Stock Market Financial Winter is Coming<\/a>
\n2012-03-02 – Dan Denning <\/p>\n

Why You’ll Want to Watch This ‘Bad’ Retail Stock Very Closely<\/a>
\n2012-03-01 – Kris Sayce <\/p>\n

Higher Oil Prices – Government Guaranteed<\/a>
\n2012-02-29 – Dr. Alex Cowie <\/p>\n

Asymmetric and Economic Warfare with Iran<\/a>
\n2012-02-28 – Dan Denning <\/p>\n

Why the Greek Debt Crisis Has Nothing to Do With the Euro<\/a>
\n2012-02-27 – Nick Hubble <\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nDomino\u2019s: A Surprising New Way to Profit From Mobile Technology <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au Back in February, Kris alerted you to the idea of lazy investing. He said: ‘Let’s be honest. If you could find a way of making a lot of money without doing anything, odds are you’d jump at it.’ In the fast food sector, Kris reckoned he’d found ‘…three of the laziest – potentially … <\/p>\n

Continue reading “Domino\u2019s: A Surprising New Way to Profit From Mobile Technology”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-28012","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/28012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=28012"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/28012\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=28012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=28012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=28012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}