Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.
What: Shares in Domino’s Pizza (LSE: DOM) slid in early trade this morning, following the resignation of chief executive officer Lance Batchelor.
So what: Mr Batchelor has accepted a new role in “a significant private equity backed company”, according to Domino’s management, in a different market sector. Chairman Stephen Hemsley commented:
“We have begun the process to find a replacement for Lance who will be with us until 30th April 2014 to help with an orderly handover to his successor. We will update the market on progress with that process in due course.”
Now what: Mr Batchelor joined Domino’s in December 2011, when the share price was hovering around 400p. He guided it to an all-time high of 708p at the end of May this year, and helped the company embrace online ordering technology that saw one in five orders made on a mobile device in 2012 — with full-year figures expected to show an increase in that number.
Investors will be keeping a close eye on who is chosen to fill the significant shoes of Mr Batchelor, and whether their credentials can carry on the good work left by the current CEO.
