Domino’s Pizza Enterprises (DPE), the Australia-listed franchise operator and the world’s largest Domino’s franchisee outside the U.S., announced on Tuesday that Don Meij, its long-serving CEO, will be stepping down. This transition ends more than 20 years of Meij’s leadership during which he transformed the company from a modest local pizza chain into a billion-dollar global enterprise spanning 12 countries.
The company’s shares were notably volatile following the news, initially dropping 6% before attempting a brief rebound of nearly 4%. As of 0021 GMT, shares settled at A$31.67, reflecting a 6% decline amid investor concerns over the company’s mixed financial outlook and Meij’s departure. Analysts and stakeholders are closely watching for signals that DPE’s new leadership under incoming CEO Mark van Dyck, a seasoned executive from the Compass Group, will successfully reinvigorate the company’s growth trajectory.
Don Meij’s story has become an emblematic tale in Australia’s corporate landscape. He began his career as a pizza delivery driver at a small pizzeria in Redcliffe, Queensland, a business that would later acquire the Domino’s brand in Australia. In 2002, he was appointed CEO and soon took the company public in 2005, marking Australia’s first listed pizza franchise and positioning Domino’s Pizza Enterprises as a significant player in the food and beverage industry.
Under Meij’s leadership, Domino’s experienced unprecedented expansion, growing from a modest valuation of A$132 million at its debut in May 2005 to a peak valuation of A$14.46 billion in September 2021. The company’s growth journey was marked by innovative marketing strategies, technological investments, and substantial overseas expansion, particularly in the Asia-Pacific region and Europe.
In recent years, however, DPE has faced mounting challenges. As pandemic-induced lockdowns ended, Domino’s, like other food delivery chains, has struggled to maintain the same level of sales achieved during COVID-19. This has been particularly evident in key international markets such as Japan, where ambitious growth plans were adjusted due to underwhelming sales volumes and rising operational costs.
Domino’s stock, listed on the Australian Securities Exchange (ASX), reflected the market’s mixed response to Meij’s departure and a concurrent lackluster trading update. Shares showed volatility, swinging from a 6% drop to a brief near 4% rise in early trading, as investors digested the implications of both the management change and the company’s latest financial performance.
Domino’s reported a 1.2% decrease in group same-store sales for the first 17 weeks of fiscal 2025. The underperformance was most pronounced in its German, Japanese, and French markets, which have recently proven challenging.
According to analysts, these struggles reflect broader difficulties in the post-COVID environment, where the consumer shift away from delivery services and higher costs have weighed heavily on the company’s results. Phillip Kimber, a retail analyst at E&P Financial, noted that while van Dyck brings extensive experience from Compass Group, managing the existing relationships with franchisees and enhancing their profitability will be a critical focus if Domino’s is to return to its pre-pandemic success.
Meij’s tenure is marked by Domino’s rapid geographic expansion, with store openings across Australia, New Zealand, Japan, and parts of Europe, including Germany and France. The Australian-listed Domino’s Pizza Enterprises (DMP) became a beacon of the franchise’s international growth strategy, adding significant value to the Domino’s brand.
In 2021, when Domino’s stock reached an all-time high, the company’s valuation of A$14.46 billion highlighted Meij’s success in positioning DPE as a global leader in fast-food delivery. But the pandemic’s shift in consumer behavior has led to a decline, with the company now valued at approximately A$3.12 billion as of early November.
In Japan, for instance, the company set an ambitious goal to open 2,000 stores over the next decade. However, weak sales volumes and high operational costs led to a scaling back of this target, underscoring the difficulty of sustaining growth in competitive and cost-sensitive markets. The decision has been mirrored in other international markets where inflation and shifting consumer trends post-COVID have resulted in reduced demand for delivery services, pressuring Domino’s bottom line.
As Meij steps down, industry experts have weighed in on the potential impacts. Jefferies analysts, who acknowledged Meij’s “enormous contribution and value creation” during his tenure, expressed optimism that his departure could usher in a fresh perspective necessary to revitalize the business. They remarked that “this development is positive because it paves the way for the business to make the changes required to improve unit economics and restore growth.”
Van Dyck’s extensive background in food services with Compass Group, particularly in the Asia-Pacific region, is expected to equip him with the expertise needed to navigate the shifting landscape of consumer expectations and operational challenges in international markets. However, he will also have to address the specific concerns and goals of DPE’s franchisee network, who are eager for profitability improvements amidst fluctuating demand and higher supply chain costs.
The selection of Mark van Dyck, formerly Compass Group’s Asia-Pacific managing director and an advisor to Domino’s board over the past year, suggests that Domino’s aims to maintain continuity while introducing a fresh strategic approach to tackle the firm’s ongoing challenges. As the world’s leading food services company, Compass Group provided van Dyck with an extensive understanding of catering to diverse tastes and business environments, which will be invaluable as he steps into his new role with DPE.
Phillip Kimber from E&P Financial noted that “whilst the incoming CEO has strong credentials from Compass Group, managing the relationship with franchisees and improving their profitability will be his key challenge.” Many franchisees have felt the squeeze from rising operational costs and sluggish demand, making profitability a top priority.
As DPE enters this new chapter, industry analysts will be closely watching van Dyck’s initial actions, especially as they pertain to restructuring, innovation, and enhancing franchisee support. His track record with Compass, a company known for its focus on scalable operations, could be advantageous for Domino’s as it seeks to improve unit economics and stabilize the bottom line across markets.
