Domino’s Pizza Group CEO Departure Ends Least Rewarding Chapter
David Wild plans to retire after more than five years at helm.
(Bloomberg) -- News that Domino’s Pizza Group Plc Chief Executive Officer David Wild is stepping down ends the least rewarding chapter in the company’s 20-year history as a public company.
The stock has returned about 9% a year since Wild took the helm in April 2014, the lowest total annualized returns when compared with Domino’s past three CEOs, according to data compiled by Bloomberg.
Wild’s tenure has been marked by challenges in Domino’s international business as well as a dispute between the company and U.K. franchisees, which have reportedly said rising food and business costs aren’t being shared equitably. Domino’s is still in active talks with its franchisees and a resolution will take some time, the outgoing CEO said Tuesday.
“A management transition may allow new perspectives on franchisee negotiations and might lead to a change of approach internationally,” Numis analyst Richard Stuber wrote in a note. He has a buy rating on the stock.
Domino’s shares rose as much as 8.6% in London on the announcement and as the company reported accelerating U.K. sales growth, pushing them slightly into positive territory for the year. The reaction may be “a bit harsh, but investors seem to like the news,” Neil Wilson, chief market analyst for Markets.com, wrote in an email.
To contact the reporter on this story: Lisa Pham in London at lpham14@bloomberg.net
To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Paul Jarvis
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