The chief executive of Domino’s Pizza has resigned after two years, following a substantial decline in the company’s stock price over the past year. Andrew Rennie, who joined the board in 2023, will leave immediately, with chief operating officer Nicola Frampton stepping in as interim CEO until a permanent successor is appointed.
This leadership change adds to the uncertainty at the top of the pizza chain, which will also see an interim chief finance officer before the arrival of former Marston’s CEO, Andy Andrea. Rennie had previously proposed expanding Domino’s by acquiring a second fast-food brand to boost growth. However, this strategy is now on hold until a new permanent CEO is in place. Domino’s has stated it will review its capital allocation priorities following Andrea’s arrival.
“The Board believes that there are a number of opportunities to drive further growth and value creation in Domino’s core business,” said chair Ian Bull. In its recent trading update, Domino’s reported a 2.1 per cent increase in sales for the third quarter, although delivery orders dropped by 3.4 per cent due to weaker consumer sentiment. Domino’s shares saw a slight increase of 0.6 per cent to 172p in early trading on Tuesday.
Domino’s stock has faced challenges, becoming the UK’s most shorted public company last month, despite a significant share buyback effort. The FTSE 250 company’s shares are at a 10-year low, struggling with rising labour costs and weak consumer confidence. Financial Conduct Authority data indicated that major hedge funds, including Blackrock, Citadel, and Marshall Wace, held significant short positions against Domino’s. This month, Greggs has overtaken Domino’s as the most-shorted stock.
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