Domino’s Pizza parts ways with chief who bet on fried chicken

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.The chief government of Domino’s UK, who predicted the pizza market was nearing saturation level and led a push into fried hen, has stepped down. Andrew Rennie will depart instantly “by mutual settlement”, the UK’s largest pizza operator mentioned on Tuesday, including that it was pausing acquisition plans. Chief working officer Nicola Frampton will take over as interim chief government whereas the FTSE 250 group searches for a brand new chief and continues to battle strain from an activist investor. Rennie, who took over as chief government of Domino’s UK in August 2023, advised the Monetary Instances earlier this month there was not “huge progress” left within the UK’s pizza market, as he outlined plans to wager on fried hen and pursue a second model acquisition in a bid to return to progress. His departure means the corporate is with out both a everlasting chief government or chief monetary officer as new appointee Andrew Andrea doesn’t begin till March. Domino’s mentioned it will proceed to roll out its new Chick ‘N’ Dip providing throughout its 1,400 shops within the UK and Eire because it seeks to faucet into rising demand for fried hen.“The board believes that there are a selection of alternatives to drive additional progress and worth creation in Domino’s core enterprise,” mentioned chair Ian Bull. “We’re centered on figuring out the correct CEO to guide the disciplined execution of that progress technique . . . underpinned by a rigorous give attention to shareholder returns.” Domino’s additionally mentioned on Tuesday that it was suspending a capital markets day scheduled for early December. The shares, among the many UK’s most shorted shares, dipped about 2 per cent in early buying and selling on Tuesday, bringing the decline this yr to nearly 46 per cent. Shore Capital analyst Katie Cousins wrote in a observe that Rennie’s departure was “sudden” and a “loss to the enterprise given the wealth of expertise” that he introduced.Domino’s, which opened its first UK outlet in Luton in 1985, is affected by a broader slowdown in pizza demand. Its rivals are additionally struggling. Pizza Hut mentioned in October it was closing 68 eating places throughout the UK, whereas Papa John’s in August mentioned it had shut 74 branches within the earlier monetary yr. Activist investor Browning West, which has a 5 per cent stake in Domino’s, has urged the corporate to pause its acquisition plans and pursue a take-private deal. Browning West has held a stake since 2019. An August letter from Browning West founding associate Usman Nabi warned that the financial atmosphere had “worsened” whereas Domino’s valuation had sunk “decrease than might have been imagined”.Domino’s mentioned on Tuesday that it will evaluate its capital allocation insurance policies following Andrea’s arrival and pause plans to amass a second model till a brand new chief government was appointed.