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Domino’s Pizza Enterprises (ASX: DMP) has been rocked by the departure of CEO Mark van Dyck who has stood down immediately, wrapping up just eight months in the role he filled following the retirement of long-time CEO Don Meij last year.
Van Dyck, who had been an advisor to the Domino’s board for a year prior to his appointment, has also immediately exited the board as a director but plans to continue supporting the leadership team until his official departure on 23 December 2025.
Domino’s Pizza has given no reasons for van Dyck’s sudden resignation.
In November last year, it appeared that Van Dyck was in for the long haul after the company said that Meij would work with the Domino’s board and van Dyck over the ensuing 12 months to ensure a smooth transition for the new CEO.
Today’s announcement delivered a shock to the Domino’s share price, which slumped more than 26 per cent to a low of $14.86 in morning trading on the ASX - wiping almost $500 million off the company's value.
After a tough couple of years for Domino's, van Dyck was chosen to replace Meij due to his experience as a turnaround specialist in the food services sector.
The Brisbane-based franchisor of Domino’s outlets in Australia, New Zealand, Asia and Europe suffered a 6.7 per cent fall in earnings before interest and tax for the first half of FY25 as network sales dipped 2.9 per cent to $2 billion led in part by store closures.
Announcing the result in February this year, Van Dyck noted that the company was making progress in rebalancing the business in the wake of a downturn in consumer spending, but he said more needed to be done “to restore value for our shareholders, franchise partners and customers”.
The exit of van Dyck follows an announcement in May that Australia-New Zealand CEO Kerri Hayman would be stepping down in August after 37 years with the company.
While Domino’s is now on the hunt for its second CEO in less than a year, fast-food industry pioneer and company chairman Jack Cowin has assumed the role of executive chair until a replacement can be found.
Cowin, who introduced the Hungry Jack’s brand to Australia under a franchise agreement with Burger King and leads the brand’s owner CFAL Group, is the largest shareholder of Domino’s Pizza Enterprises with a 25.6 per cent stake.
The fall in today’s share price has wiped almost $100 million off the value of his holding.
“Mark has made a valuable contribution to Domino’s during a period of significant operational reset,” says Cowan.
“With the strategic foundations now firmly in place, this transition enables a new CEO to take Domino’s to its next stage of growth. I look forward to supporting the executive team during this important phase.”
Under his leadership, Domino’s Pizza says van Dyck closed 205 underperforming stores in Japan, Europe, Australia and New Zealand and removed low return-on-investment spend while improving procurement channels.
He also restructured leadership within the group’s IT, marketing and finance divisions and established a turnaround plan for the group’s troubled Japanese operations.
Earlier this year, van Dyck moved to stem the downturn in Japan with plans to close 172 loss-making stores over the second half of FY25.
“It has been a privilege to lead Domino’s through a transformative period,” says van Dyck.
“With a clear strategy and strong team in place, I believe the time will be right at the end of this calendar year to hand over to the next CEO.
“My focus in the months ahead will be on supporting a smooth transition.”
Domino’s Pizza shares were trading at $15.55 at 11.23am (AEST), down $4.59.
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