Domino's Pizza Enterprises, the largest international franchise operator of the U.S.-based pizza chain, announced a major leadership transition on Tuesday. Don Meij, the CEO who served for over 20 years, is stepping down, marking the end of an era for the company. 

This leadership shift was met with volatility in the stock market, as shares of Domino’s Australia dropped nearly 6% to A$31.67 ($20.84) during early trading hours, reflecting investor concern over both Meij's departure and a recent soft trading update.

Don Meij’s career with Domino’s is a unique story of growth and resilience. Starting out as a delivery driver in Queensland, Meij rose through the ranks to eventually lead the company, becoming CEO in 2002. 

Under his leadership, Domino’s expanded from a small regional business to a global powerhouse, cementing itself as Australia’s first publicly listed pizza company when it went public in 2005. Over the years, Domino’s reached significant milestones, with operations now spanning 12 countries across Asia-Pacific and Europe.

Meij was a driving force behind the franchise’s rapid expansion and innovation, introducing digital advancements that allowed Domino’s to remain a competitive player in the food delivery industry. His tenure saw the company reach its highest valuation of A$14.46 billion in September 2021. As of early November 2024, however, Domino’s Australia is valued at A$3.12 billion, a sharp decrease due to recent financial challenges and post-pandemic shifts in consumer behavior.

Domino’s recent struggles were evident in its fiscal 2025 trading update. The company reported a 1.2% decline in group same-store sales across the first 17 weeks, attributed primarily to sluggish performance in key international markets, including Germany, Japan, and France. Japan, in particular, was a major target for growth, with an ambitious plan to establish 2,000 stores. However, the country’s weaker-than-expected demand forced Domino’s to reconsider this strategy amid high costs and economic pressures.

The drop in sales, coupled with high operational costs, has taken a toll on the company’s profitability. Analysts suggest that these challenges underscore the need for a strategic shift in Domino’s approach to global expansion and unit economics. The hope is that the incoming leadership will bring fresh perspectives to address these issues.

Taking over as CEO is Mark van Dyck, formerly the Asia-Pacific managing director of the Compass Group, a London-based food services firm. Van Dyck is no stranger to Domino’s, having served as an advisor to the board for the past year. His extensive experience in food services and his familiarity with the brand position him as a promising successor.

The news of Meij’s departure and van Dyck’s appointment triggered notable stock fluctuations. Domino’s shares fluctuated between a 6% drop and a minor rise of nearly 4% before stabilizing with a net decrease. 

Analysts are cautiously optimistic about the transition, with some viewing it as a necessary step to address operational inefficiencies and improve franchise profitability. Jefferies analysts, for instance, expressed that while Meij’s contributions were substantial, his departure could pave the way for “changes required to improve unit economics and restore growth.”

A new era for Domino’s under Mark van Dyck

As the incoming CEO, van Dyck faces the critical challenge of navigating Domino’s through this period of transformation. According to Phillip Kimber, a retail analyst at E&P Financial, van Dyck’s primary challenge will be managing franchisee relations and improving profitability. Franchisees are essential to Domino’s business model, and ensuring their success is pivotal to the company’s overall health. If franchisees struggle with profitability, it could hamper Domino’s ability to maintain a cohesive and motivated network, further impacting its performance.

Another pressing issue is Domino’s approach to international expansion. Under Meij, the company aggressively pursued growth in various markets, sometimes at the cost of profitability. Moving forward, analysts suggest that a more balanced strategy focused on enhancing existing market performance may yield better results. Markets like Japan have shown that a rapid expansion strategy can be unsustainable if local demand does not meet expectations.

Despite current challenges, there is optimism surrounding Domino’s potential for growth under new leadership. Van Dyck’s appointment signifies a possible shift toward operational efficiency and strategic recalibration. While Meij’s tenure was marked by rapid expansion and digital innovation, the current market environment may require a more measured approach to sustain long-term profitability.

The recent struggles in Germany, Japan, and France highlight the need for a targeted strategy that considers market-specific dynamics. Domino’s will likely focus on refining its presence in these regions, possibly investing more in marketing, supply chain optimization, and franchisee support to stabilize performance.

Van Dyck’s background in the Compass Group also suggests that he may bring a fresh perspective on cost management and operational discipline, which could be beneficial for Domino’s franchisees navigating inflationary pressures and fluctuating consumer demand.