Shares of ASX-listed Domino’s Pizza Enterprises Limited (AU:DMP) dropped today following the resignation of the company’s CEO Don Meij, who has served in the leadership role for over two decades. Meij will retire after nearly 40 years with the company. Following the news, DMP stock lost 6.26% in today’s trading session.
Domino’s Pizza Enterprises is Australia’s largest pizza chain by store count and sales and the biggest franchisee of the U.S.-based Domino’s brand globally.
Meij’s Retirement Signals the End of an Era
Meij’s retirement from the company marks the end of an era after nearly 40 years of service. Under his leadership, Domino’s transformed into Australia’s largest and first publicly listed pizza chain with a multi-billion dollar business. The company has since expanded into a global enterprise, boasting over 3,800 outlets across 12 markets.
Domino’s has appointed Mark van Dyck as the replacement of Meij, effective November 6. Dyck brings a wealth of experience from the food and beverage sector and has served as an adviser to Domino’s board for the past year.
Meij will serve on DPE’s board and work with Mark van Dyck over the next 12 months.
Domino’s Releases a Trading Update
Domino’s also released its trading update for the first 17 weeks of FY25. The company reported a 1.2% decline in its same-store sales as compared to a growth of 2.7% in the same period last year.
Regionally, Singapore witnessed two years of strong compounding sales growth, while Taiwan returned to growth. On the other hand, sales in Germany, France, and Japan were negative, indicating a need for further efforts in these markets to achieve positive results.
Is Domino’s Pizza Enterprises a Good Stock to Buy?
According to TipRanks, DMP stock has received a Moderate Buy rating based on a total of 12 recommendations. The Domino’s Pizza Enterprises share price target is AU$36.96, which is 16.7% above the current price level.
