Domino’s Pizza Group CEO Departure Ends Least Rewarding Chapter
(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
©2019 Bloomberg L.P.
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
