Domino’s Pizza Enterprises Ltd (ASX: DMP) is the largest pizza chain in Australia and the largest franchisee of the Domino’s Pizza brand outside the United States, operating more than 3,700 stores across 12 markets including Australia, New Zealand, Japan, France, Germany, and the Netherlands. The company holds exclusive master franchise rights for the American-owned Domino’s brand in the Asia-Pacific and parts of Europe, overseeing a network that generates over $4 billion in annual sales. With a presence in both mature and emerging markets, Domino’s supports local franchisees through centralised digital ordering platforms, advanced supply chain systems, and a vertically integrated technology ecosystem that drives operational efficiency, customer engagement, and brand loyalty. The company has invested heavily in AI, predictive ordering, and autonomous delivery innovations, positioning itself as a leader in the digital transformation of the global quick-service restaurant (QSR) industry.

A New Chapter: Leadership Transition

Domino’s Pizza Enterprises is undergoing a significant leadership transition as long-serving CEO Don Meij steps down after 22 years at the helm. The company has appointed Mark van Dyck, a seasoned executive with experience at Compass Group, as the new CEO. This change comes amid challenges in international markets and a strategic shift to enhance profitability and investor confidence.

Don Meij’s departure marks the end of a transformative era for Domino’s. Starting as a delivery driver in Redcliffe, Queensland, Meij rose through the ranks to become CEO, leading the company through its 2005 ASX listing and expanding its footprint to over 3,700 stores across 12 countries, generating more than $4 billion in sales. Despite these achievements, recent years have seen the company grappling with underperformance in key markets like Japan and France. Meij will remain with the company for a 12-month transition period to support van Dyck’s onboarding.

Mark van Dyck brings a wealth of experience from his tenure at Compass Group, where he served as Regional Managing Director for Asia Pacific. His appointment signals a strategic move to revitalise Domino’s operations and address the challenges faced in various markets.

Financial Performance and Market Response

Domino’s recent financial results reflect the hurdles the company faces. For the half-year ending December 29, 2024, the company reported a 6.7% decline in EBIT to $100.6 million compared to the previous year. Network sales fell by 2.9% to $2.08 billion, with same-store sales dipping by 0.6%. While Australia and the Benelux region showed strong performance, challenges persisted in Japan and France.

In response to these challenges, Domino’s announced the closure of 205 underperforming stores, including 172 in Japan. This move is expected to save approximately $15.5 million annually, despite incurring a one-time restructuring cost of $61.8 million. The closures are anticipated to boost annual operating earnings by $10–12 million.

The market reacted positively to these strategic decisions. Following the announcement of the store closures and leadership change, Domino’s share price surged by 23.8% to $36.68, marking its highest level since October 2024 . This uptick reflects investor optimism about the company’s efforts to streamline operations and improve profitability.

Strategic Outlook and Investor Implications

Under van Dyck’s leadership, Domino’s is focusing on simplifying its business model and enhancing unit economics. The company aims to prioritise same-store sales growth and selectively add new stores in promising markets. Early signs are encouraging, with a 4.3% same-store sales growth reported in the first five weeks of the second half of fiscal 2025 .

For investors, these developments suggest a proactive approach to addressing operational inefficiencies and adapting to market dynamics. The leadership transition, coupled with strategic cost-cutting measures, positions Domino’s to navigate current challenges and capitalise on growth opportunities in the evolving fast-food industry.

As Domino’s embarks on this new chapter, stakeholders will be closely monitoring the company’s performance under van Dyck’s stewardship. The focus will be on sustaining momentum in profitable regions, turning around underperforming markets, and delivering value to shareholders through strategic initiatives and operational excellence.