Domino's Pizza CEO Resignation

(Reuters) – Domino's Pizza (NYSE:DPZ) Enterprises, the largest franchise operator outside the U.S., announced Tuesday that its long-serving CEO was stepping down after more than twenty years. Under his leadership, the franchise transformed into a multi-billion dollar business.

Shares of the Australia-listed company showed volatility in early trading, fluctuating between a 6% drop and a nearly 4% rise, settling down around 6% at A$31.67 ($20.84) as of 0021 GMT.

A disappointing trading update contributed to the decline. Group same-store sales fell by 1.2% during the first 17 weeks of fiscal 2025, with significant sales declines reported in Germany, Japan, and France.

Don Meij, who began his career as a delivery person at a pizzeria in Redcliffe, Queensland, was appointed CEO in 2002. He oversaw the company's initial public offering in 2005, making Domino's Australia's first publicly traded pizza chain and expanded the brand across 12 countries in Asia, Australia-New Zealand, and Europe.

However, the company has struggled with sales in a post-COVID era, particularly in Japan, where initial plans to establish 2,000 stores had to be scrapped due to low sales and high costs.

Domino's Pizza, which entered the Australian market in May 2005 with a valuation of A$132 million, reached a peak valuation of A$14.46 billion in September 2021. As of Nov. 4, the company is valued at A$3.12 billion.

Analysts at Jefferies acknowledged Meij's significant contributions but viewed his resignation as a positive change that could help the company improve its profitability and growth strategies.

Mark van Dyck, managing director of the Asia-Pacific division at Compass Group (LON:CPG), has been appointed to succeed Meij, effective Nov. 6. Van Dyck has also acted as an adviser to Domino's board over the past year.

"The new CEO's main challenge will be managing franchisee relationships and improving profitability," noted Phillip Kimber, a retail analyst at E&P Financial.

($1 = 1.5200 Australian dollars)