Shares in Domino's Pizza Enterprises Ltd (ASX: DMP) are trading higher on Monday after the company announced its new local Chief Executive Officer. The company remains on the hunt for someone to fill the top job at the company.
In a statement to the ASX on Monday morning the company said experienced Domino's and quick service restaurant executive Merrill Pereyra would take over the role overseeing Australia and New Zealand effective 23 January.
Depth of knowledge
Mr Pereyra, the company said, had more than 30 years' experience in the sector including regional leadership roles with McDonalds and as chief executive of Domino's Pizza Indonesia.
The company added:
Since 2019 Mr Pereyra has been managing director of Pizza Hut, India, for Yum! Brands, where he led a turnaround of sales performance and halved store paybacks.
Domino's executive chairman Jack Cowin said the company was "delighted" to appoint an executive of Mr Pereyra's calibre to the role.
Merrill has a track record of building franchise relationships, growing same store sales and unit economics to return to network expansion – the board is confident he will work closely with our franchise partners to improve our business performance.
Domino's also said that George Saoud, who was appointed chief financial officer in July last year, would also now take on the role of Chief Operating Officer.
The company added:
Mr Saoud's expanded role will help to drive sustainable growth across Domino's global operations, and reflects the company's focus on disciplined execution, operational performance and cost management across the group.
In terms of filling the group Chief Executive role, Domino's said the search is "progressing well''.
Work to be done
Domino's will be looking to turn around its results from last year, when total sales fell 0.9% to $4.15 billion and EBIT was 4.6% lower at $198.1 million.
The company lost its previous Chief Executive, former Coca Cola executive, Mark van Dyck in July, with the company's shares being sold down to their weakest levels in 11 years at the time.
Mr van Dyck had only been in the top role for eight months, and Mr Cowin stepped in during the interim period to oversee the company.
Domino's shares were trading 4.2% higher on the news on Monday, up 95 cents to $23.50. Domino's shares have traded as low as $13.11 in the past year and as high as $36.68.
Domino's was valued at $2.12 billion at the close of trade on Friday.
Domino's is one of the most-shorted stocks on the ASX, with its short interest currently sitting at 17.7%.
