Domino’s Pizza Shares Drop 15% as Leadership Instability Shakes Confidence

The sudden departure of van Dyck, who succeeded long-standing CEO Don Meij in November 2024 after Meij’s two-decade tenure, adds another layer of uncertainty to a company already grappling with significant challenges. Meij’s resignation in November 2024, which sent shares down around 6%, was followed by the appointment of van Dyck, formerly of Compass Group and now his is replaced by Interim Executive Chairman Jack Cowin while a global search for a new CEO is underway.

This rapid succession of leadership changes has understandably rattled investors, fueling concerns about the company’s strategic direction and operational stability. The previous abrupt resignation of Kerri Hayman, CEO of Domino’s Australia and New Zealand, after just nine months further compounds these concerns.

Today’s price action represents a continuation of a worrying trend for DMP shareholders.

The stock closed at $20.14 on July 1, buoyed by a 4.51% gain, but this proved to be a false dawn as the CEO announcement triggered a massive sell-off. Year-to-date, the stock is down a concerning 42.29%, with today’s intraday low of $14.80 also the new 52 week low. DMP did catch a bid off lows, with the intraday swing from low into close 14.5%.

The company’s struggles however extend beyond leadership instability. In February, Domino’s announced plans to close 205 underperforming stores globally, including a significant 172 in Japan, a key market. This strategic restructuring, aimed at improving financial performance, underscores the challenges the company faces in maintaining profitability and growth. The closures are projected to yield annualized earnings before interest and taxation benefits of approximately $10-$12 million, but the scale of the closures highlights the severity of the underlying issues.

Financial performance has also been a cause for concern. The company’s first-half profit declined, and same-store sales momentum has slowed.

Underlying profit after tax from continuing operations was A$58.8 million for the six months ended December 29, 2024, falling short of consensus estimates. Same-store sales growth for the first seven weeks of the second half of 2025 was 1.5%, a significant drop from the 4.3% growth reported for the first five weeks. Revenue declined across key markets, with Asia down 7.1% to A$402 million.

The current share price is at its lowest level since 2013, reflecting concern over both the direction of travel, and the instability in the firm.