- Shares close 2.9% higher
- Gregory to start by August 5
- Looks to be a good appointment, says analyst
Feb 11 (Reuters) - Domino's Pizza Enterprises has tapped former McDonald's executive Andrew Gregory as its CEO, pinning hopes on the quick‑service restaurant sector veteran to steer it through a turbulent period of sliding sales and rising competition.
The appointment comes more than seven months after the Australian pizza chain operator announced the exit of its previous CEO Mark van Dyck. He had joined Domino's Pizza Enterprises in November 2024 after longtime chief Don Meij left in late 2024.
Gregory has been in the quick-service restaurant sector for more than three decades, and most recently served as McDonald's senior vice president for global franchising. An Australian by nationality, Gregory also helmed the role of MD and CEO of McDonald's ANZ for eight years from 2014.
He will start in his new role by August 5, Domino's Pizza Enterprises said on Wednesday.
"Looks to be a good appointment from our end... Well credentialed, relatively young and with a strong track record in QSR and specifically franchisee engagement and growth," said Romano Sala Tenna, portfolio manager at Katana Asset Management, which invests in Domino's Pizza Enterprises stocks.
Shares of the company rose as much as 5.8% to A$23.650 in their biggest intraday percentage gain since January 12. The stock closed 2.9% higher.
The largest master franchise of the U.S.-based Domino's Pizza has been struggling with declining sales and rising costs.
The company, which is present in 12 countries across Asia, Europe, and Australia and New Zealand, posted its first annual loss last year since going public over two decades ago.
It rose to prominence in 2021 when the pandemic lifted demand for deliveries, but has since struggled with intense competition from delivery platforms and the emergence of rivals such as Sydney-listed burrito chain Guzman y Gomez.
Reporting by Sameer Manekar & Rajasik Mukherjee in Bengaluru; Editing by Alan Barona and Subhranshu Sahu
Source: Reuters