Domino’s CEO Don Meij steps down after 22 years

Domino’s boss Don Meij said the “sheer intensity” of the global CEO role played a hand in his decision to step down after 22 years at the helm, the last two of which were marred by the chain’s poor performance in Asia and Europe.

The pizza company said on Tuesday its long-serving chief executive would be replaced by board advisor and former Coca-Cola executive Mark van Dyck.

Running the global business, which Meij said operates virtually around the clock, required “immense intensity”.

“I think I’m the third longest-serving ASX CEO at this point. There’s a time when you say, look, it’s time to hand it on to new leadership,” he said.

Domino’s Pizza’s long-serving boss Don Meij has been replaced.

Meij added he will stay with the business for 12 months to assist the board, but hinted he was open to new roles once the year-long handover period wound up.

“I’m an entrepreneur, at least in my own mind,” he said. “I just know that in my heart I’m young enough and that I have the energy and the desire to do one more thing in my career.”

Meij has been under pressure over the past year to turn around falling sales in some international markets such as Japan, Taiwan, Malaysia and France, and Domino’s was forced this year to issue its fourth profit downgrade in three years. In August, Meij relinquished the chief executive role of the Australian and New Zealand division and was replaced by his sister, Kerri Hayman.

‘While this decision was not easy, it’s the right time for me to step back and for new leadership to guide the next era of growth.’

Domino’s parting boss Don Meij

The company’s share price – which hit a peak of nearly $162 in September 2021 as people ordered more pizza during lockdowns – has fallen 47 per cent since the beginning of the year. It has also at times drawn unfavourable comparisons to Guzman y Gomez, which enjoyed a blockbuster float on the Australian stock exchange in June.

Meij on Tuesday rejected talk that Domino’s had fallen out of favour with consumers aged 15 to 24. “I can assure you, our highest growth customer is the youngest group,” Meij said.

“There’s myth and legend around those themes that have made the papers for different investment profiles, but I can absolutely tell you from a market share point of view, from a customer account growth point of view … pizza [has] always been … the No.1 food consumed at uni.”

Domino’s chairman and Hungry Jack’s founder Jack Cowin thanked Meij for his leadership on behalf of the board.

“Don has done an exceptional job of delivering positive outcomes for all our stakeholders, including franchise partners, shareholders and employees,” Cowin said. “He leaves an impressive legacy.”

The company said the appointment of van Dyck, who was most recently Asia Pacific regional managing director at global foodservice business Compass Group, came after a global search that considered a number of candidates.

“It was natural we would consider him in the search process,” Cowin said. “His extensive experience in global food service, combined with a track record of successful transformations, makes him the ideal candidate.”

Van Dyck’s fixed salary will be $1.59 million – less than his predecessor who pocketed $1.78 million in fiscal 2024. He will also be entitled to $792,500 in share grants and a long-term bonus of up to another $1.59 million, taking his pay for the year to potentially close to $4 million, which next financial year could rise to as much as $4.76 million.

Six years ago, Meij topped the table of Australia’s highest-paid chief executives, taking home $36.8 million that year. In the 2024 financial year, Meij’s fixed pay represented 27 per cent of his total package. Nearly half of that was made up of long-term incentives, with the remainder split equally between short-term equity and cash linked to short-term incentives. The total package came to about $6.6 million.

Meij still holds 1,667,969 shares in Domino’s worth around $52,874,617.30, according to company’s 2024 annual report. Domino’s shares closed out the session on Tuesday over 6 per cent weaker at $31.60 as investors digested the news.

The “CEO change [is] not totally unexpected, but still a surprise,” said UBS retail and consumer analyst Shaun Cousins.

E&P retail analyst Phillip Kimber said Meij was a key figure for franchisees even though the market had been disappointed with the company’s performance in recent times.

“In one sense, [Domino’s] is in the business of selling franchises (that sell pizza) – thus franchisee relationships (including profitability) are crucial to the success of the business,” Kimber said in a note.

“Whilst the incoming CEO has strong credentials from the Compass Group, managing the relationship with franchisees and improving their profitability will be his key challenge.”

RBC Capital Markets analyst Michael Toner said the management change was an “opportunity for a reset”.

“Mark’s experience in restructuring and growing a Japanese business should provide a solid foundation to arrest the challenges Domino’s is experiencing in Japan,” Toner wrote in a note.

“We believe a turnaround in Japan and France [same store sales growth] and franchise profitability is a core prerequisite for Domino’s to execute on its longer-term growth strategy.”

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