Domino’s Pizza (LON:) Enterprises, the brand’s largest franchise operator outside the United States, today announced the resignation of its CEO, Don Meij, after more than 20 years at the helm of the company. The news caused volatility in the company’s shares during early trading, with shares falling significantly by 6% to A$31.67 ($20.84) at 0021 GMT.
The Australian-listed company also reported a 1.2% decline in group like-for-like sales for the first 17 weeks of fiscal 2025. Notably, sales in Germany, Japan and France also saw a decrease.
Meij, who began his career as a delivery driver at a Queensland pizzeria that would later become Domino’s Australia, rose to CEO in 2002. Under his leadership, the company launched its initial public offering in 2005 and expanded to 12 countries, becoming into Australia’s first publicly traded pizza chain.
Despite global expansion, the company has faced challenges in maintaining sales in the post-COVID era, especially in Japan, where ambitious growth plans have been scaled back due to low sales and high costs.
At its peak in September 2021, Domino’s Pizza reached a valuation of A$14.46 billion. However, as of November 4, this figure has decreased to A$3.12 billion.
Jefferies analysts recognized Meij’s important contribution, but viewed his resignation as a positive step for the business, allowing for the changes necessary to improve the units’ profitability and return to growth.
Mark van Dyck, currently Asia-Pacific CEO of London-listed Compass Group, will take over as CEO of Domino’s Pizza Enterprises from 6 November. Van Dyck, who has also been an advisor to Domino’s board of directors for the past year, will be challenged with managing franchisee relationships and improving profitability, according to Phillip Kimber, retail analyst at E&P Financial.
The exchange rate at the time of reporting was $1 to 1.5200 Australian dollars.
Reuters contributed to this article.
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