The shares of Domino’s Pizza (LSE: DOM) added 16p to 530p during early trade this morning after the company announced that David Wild, presently a non-executive director, will be instated as interim chief executive with immediate effect.
Mr Wild, who has previously held senior positions at Walmart, Tesco and Halfords, has strengths in food branding and European business operations.
Outgoing chief executive Lance Batchelor will work closely with Wild until 16 March when he leaves to join travel and insurance group Saga. Wild will then act in an executive capacity for a period of two months before a new chief executive is appointed.
Stephen Hemsley, non executive chairman, commented:
“I am delighted that David has agreed to step in as Interim Chief Executive whilst we continue our search for a permanent replacement. Since joining as a Non-Exec in November, he has quickly got to grips with the business and I look forward to working with him over the coming months as we continue to progress the Group’s exciting growth plans.”
Domino’s recent financial results were somewhat tasty. The group is enjoying better-than-expected sales across its franchises with its online deliveries a particular hit with customers.
Prior to today, City experts were expecting Domino’s upcoming annual results to show earnings equivalent to 27p per share and a dividend of 16p per share.
Following this morning’s price movement, the shares may therefore trade on a P/E of 20 and offer a possible income of 3%.
The decision to ‘buy’ — based on those ratings, today’s results and the wider prospects for the food industry — is solely your decision.
