The Domino's boss just sold off $8 million worth of company shares. Here's the lowdown

The Domino's boss is having his pizza and eating it…

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A team in a corporate office shares a pizza while standing around a table chatting about the Domino's share price and Pizza Hut's threat to the business

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Key points

  • The Domino's share price is pushing higher despite some insider selling news
  • The pizza chain operator's CEO has sold $8.3 million worth of shares
  • Domino's explained that rising interest rates are behind the sale

In afternoon trade, the Domino's Pizza Enterprises Ltd (ASX: DMP) share price is edging higher despite some negative news.

At the time of writing, the pizza chain operator's shares are up 0.5% to $49.19.

Domino's share price higher despite insider selling

The Domino's share price is rising today despite the company revealing that its CEO, Dom Meij, has made a major share sale.

According to the release, Meij sold 150,000 Domino's shares via an on-market trade on 23 February.

The Domino's boss received an average of approximately $55.35 per share, which is 12.5% higher than the current share price, and represents a total consideration of $8.3 million.

It is worth noting that Mr Meij still has a considerable holding, so his interests remain firmly aligned with shareholders. Following the sales, the CEO holds a total of 1,667,969 Domino's shares.

Why did the Domino's boss sell shares?

Domino's has provided an explanation for the sales. It revealed that the funds from these share sales will be used to take a prudent approach to reduce Mr Meij's personal borrowings in a period of rising interest rates.

The company also stressed that Meij is committed to the company. It highlights that he recently signed a five-year employment contract and Brisbane remains his principal place of residence.

Mr Meij also commented on the share sales. He said:

I appreciate there is no ideal time to sell any shares, but my long-term track record shows my alignment with the future of our business and interests of shareholders and franchisees. I'm looking forward to our team delivering an improved performance this Half, and on our long term goals, and I will be leading that effort.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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