Domino’s Pizza has appointed a new chief executive, bringing in the chain’s Sydney-listed head for over two decades.
Andrew Rennie will get a slice of the action right at the top, having previously been its chief in France and Belgium, Australia and New Zealand, and most recently, Europe, which includes its ‘master franchise agreements’ in many central and northern EU countries.
During his time at Domino’s Pizza Enterprises (DPE), its Australian arm, he grew it from a company of Au$132m (£69m) to almost Au$5bn (£2.62bn). He also massively grew the European arm’s business, including its earnings by 13.5 times.
His appointment was heralded as a good move by analysts, saying it was a “textbook definition of a safe pair of hands” for the firm, while its share price went up by more than four per cent.
This comes after a tumultuous period for the pizza giant, with internal rowing about franchises, the impact of the pandemic on takeaways and inflation causing millions of Brits to cut back, putting pressure on margins.
It shrugged off inflation and the cost of living crisis, as millions bought pizza while watching the Qatar World Cup in particular.
This comes after Elias Diaz Sese, a former Burger King exec, assumed the role of interim CEO in October last year, with Rennie taking over in August.
“’Andrew understands the power and potential of the Domino’s brand as well as anyone in the business globally”, said chair Matt Shattock.
“He is an energetic and entrepreneurial leader with an incredible track record of delivering growth in Domino’s businesses around the world. All of us on the board”.
Rennie said: “The Domino’s brand is in my blood and I’ve admired the strong progress the UK and Ireland business has made in recent years.”
Working with the team at DPG and the world-class franchisees here, I know we can take the business to new heights and I can’t wait to get started.”
AJ Bell head of financial analysis, Danni Hewson said Rennie “is the textbook definition of a safe pair of hands.”
“This is perhaps what the company needs given all the drama the UK franchise owner has been through in recent years.
“Spats with franchisees, setbacks with overseas expansion, intense competition and stubborn cost pressures have made the business as dizzy as someone stepping off a Waltzer fairground ride.”
It’s time to regain focus and that’s why Andrew Rennie has been hired”, and “he’s a Domino’s lifer with an “impeccable” CV.
“Some investors might think the business needs fresh thinking and that an outsider might have been a better appointment. Yet Rennie should at least have the recipe for putting the business back on track.”
Following the announcement, Domino’s share price was up more than four per cent, as investors took confidence in the Pizza giant turning to a safe pair of hands.