The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) fast food pizza retailer closed yesterday trading for $33.71. In morning trade on Tuesday, shares are changing hands for $33.96 apiece, up 0.7%.
For some context, the ASX 200 is down 0.3% at this same time.
This comes following news that Domino's CEO and managing director, Don Meij, is stepping down. Domino's also released a trading update covering the first 17 weeks of FY 2025.
Here's what's happening.
ASX 200 pizza retailer farewells top boss
The Domino's share price is holding its own after the board announced that Meij will retire after 22 years as CEO and almost 40 years of service with the company.
Mark van Dyck will take over as CEO commencing tomorrow, 6 November. Meij will stay on during a 12-month transition period to work with the board and van Dyk.
Van Dyk's prior experience includes his most recent role as regional managing director Asia Pacific for food services giant Compass Group, which has a market capitalisation of $79 billion. In this role, he oversaw 66,000 employees in 11 countries and was responsible for serving more than 400 million meals annually. Before that, he spent 14 years in executive positions at The Coca-Cola Company.
Commenting on his four-decade stint with Domino's, Meij said, "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."
He added:
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
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.
Welcoming van Dyk to the new top job, Domino's chair Jack Cowin said:
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. His extensive experience in global food service, combined with a track record of successful transformations makes him the ideal candidate.
Domino's share price gains on trading update
Turning to the trading update for the first 17 weeks of the new financial year, Domino's share price is in the green despite the company reporting that group same-store sales were down 1.2% year on year.
On the plus side of the ledger, management reported that the Australia business positively compounded last year's strong sales, while Benelux successfully launched its new brand campaign. Taiwan returned to sales growth, and Singapore has now delivered two years of compounding sales growth.
German sales, however, remained negative compared to the record sales reported over the same period last year. Sales in France and Japan also remained negative, with management noting there was "more work required in these markets to deliver positive sales".
With today's intraday boost factored in, the Domino's share price is down 35% over 12 months.
