(Reuters) -Australia's Domino's Pizza Enterprises announced on Wednesday its CEO and Managing Director Mark van Dyck would be stepping down before Christmas. Van Dyck — who has held management
Domino's Australia CEO Resigns, Shares Plummet to 11-Year Low
By Rajasik Mukherjee and Sameer Manekar
(Reuters) -Domino's Pizza Enterprises said on Wednesday its CEO and managing director, Mark van Dyck, would step down before Christmas this year, sending the Australian franchise operator's shares plummeting about 16% to their weakest in over 11 years.
Van Dyck, a former Coca-Cola executive, took over from the franchise operator's longstanding head, Don Meij, in November last year as the company struggled to maintain sales in a post-COVID era.
In eight months, Van Dyck laid the groundwork for a turnaround, closing low-volume stores and initiating cost-saving measures. His departure, effective December 23, sent the stock spiralling.
Shares ended 15.8% lower at A$16.96 apiece, their lowest since February 2014, and logged their worst session since late January 2024.
The stock was the second biggest loser in the ASX 200 benchmark on the day, and has lost 90% of its value since scaling an all-time high in September 2021, when pizza sales surged and the company was mapping out expansion plans for the coming decade.
"A new CEO will take some time to appoint, raising the risk (of an) extended period of sub-par execution and lost earnings and further talent loss," said John Lockton, head of investment strategy at MST Financial.
The company's underlying profit declined 8% in 2024 and was 36% below its record 2021 profit. A consensus of analyst estimates forecasts an 85% slump in fiscal 2025 profit, per Visible Alpha.
The board has begun a global search to replace the incumbent CEO, the firm said. Chairman Jack Cowin, who has over five decades of experience in the quick-service restaurant sector and is the company's largest shareholder, will assume the role of interim executive chair.
Cowin was one of the founders of KFC in Australia and played a key role in Domino's expansion into Europe and Asia.
Domino's Pizza Enterprises runs the largest master franchise of the U.S.-based Domino's Pizza in 12 countries across Asia, Europe, Australia and New Zealand. Japan accounts for around a fifth of its stores.
(Reporting by Sameer Manekar and Rajasik Mukherjee; Editing by Eileen Soreng and Alan Barona)
