Don Meij is calling it quits as CEO of Domino’s Pizza Enterprises (ASX: DMP) after 22 years at the helm, ending a career with the company spanning almost four decades that began as a pizza delivery driver.
Domino’s has announced a rapid succession plan for Meij who will hang up his pizza cutter from today to make way for seasoned global food industry executive Mark van Dyck to take over as CEO.
The leadership change comes on the heels of a challenging couple of years for Domino’s, which today revealed a 1.2 per cent dip in same-store sales for the first 17 weeks of FY25.
During his time at the top Meij has transformed Domino’s from a mid-tiered fast-food business with 387 stores turning over $300 million a year to a global enterprise of more than 3,700 stores generating $4 billion in annual revenue.
“Under his leadership Domino’s Pizza Enterprises Ltd grew from a Brisbane-based company to a truly global business - the market-leader in each of the markets the company has operated for more than three years in Europe and the Asia-Pacific,” says Domino’s chairman Jack Cowin.
“Don has done an exceptional job of delivering positive outcomes for all our stakeholders, including franchise partners, shareholders and employees. He leaves an impressive legacy.”
After a challenging post-COVID trading environment, Domino’s last year undertook a strategic review to deliver cost savings and improved efficiencies with a view to lifting profitability for stores and franchisees.
The company reported a 4.6 per cent increase in network sales to $4.19 billion in FY24, with same-store sales up 1.5 per cent. This led to a 3 per cent increase in underlying earnings before interest and tax to $207.7 million.
“While this decision was not easy, it’s the right time for me to step back and for new leadership to guide the next era of growth,” says Meij.
“I’ll always be proud of what we achieved together and proud I have had the opportunity to serve: it has been a life changing experience for me.
“Domino’s really has been my life. When I started as a delivery driver in Redcliffe, Queensland, I never imagined I’d become CEO of a truly global company with more than $4 billion in sales.”
Meij thanked the Domino’s board and shareholders for their support over the past two decades.
“I’ve had the privilege of working with extraordinary teams, franchise partners and customers,” he says.
“Many of the incredible people I have worked with have gone from team members to franchise partners or executives around the world. I leave knowing that the business is well-positioned for an exciting new chapter.”
Van Dyck, who has been an advisor to the Domino’s board for the past year, was selected to replace Meij following a global search that the company says considered many candidates.
The new CEO had previously been an executive director of Compass Group, a $79 billion global food services business based in the UK with operations in 33 countries.
Van Dyck was regional managing director of Compass Group’s Asia-Pacific operations overseeing 66,000 employees in 11 countries. Before that, he spent 14 years in executive roles across the Asian region for The Coca Cola Company.
“Mark has been an advisor to the board for the past 12 months, so it was natural we would consider him in the search process,” says Cowin.
“His extensive experience in global food service, combined with a track record of successful transformations makes him the ideal candidate.”
Domino’s notes that van Dyck was responsible for doubling underlying growth and significantly lifting profitability during his time at Compass.
The company also points out that he restructured the group’s Japanese business where he “accelerated growth and profitability” while also undertaking a “strategic reset” of the Australian business that led to it being one of the most profitable markets for Compass.
Van Dyck has secured a remuneration package that comprises a base salary of $1.585 million a year, including superannuation, plus incentives. The company is also providing the new CEO with accommodation in Brisbane as part of the package.
Despite retiring from the board today, Meij will work with the Domino’s board and van Dyck for the next 12 months to ensure a smooth transition for the new CEO.
DMP shares fell almost 6 per cent following the announcement to $31.69.
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