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Domino's Pizza loses second finance director in a year

Discussion in 'Market News' started by Lily, Nov 20, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Company’s shares unaffected as it confirms positive trading outlook

    Domino’s Pizza has delivered a surprise for investors - losing its second finance director in a year.

    The company said Paul Doughty - who only joined in June - has resigned and will step down at the end of the year. His predecessor Sean Wilkins stepped down suddenly in January.

    Having spoken to the company, the reason being given for Paul’s exit is that ultimately the move wasn’t right for him, being his first involvement a food services franchise business (previously Paul was at Moneysupermarket.com and Morse Plc)

    To lose one chief financial officer in a year looks unfortunate, to lose two looks careless. There may be different reasons for the two departures but Paul’s exit is bound to raise concerns about the working environment at executive level. Given this, the board has no room for error with regard to the next chief financial officer. Perhaps the ideal scenario would be an internal appointment but we believe this is unlikely.

    Paul’s departure is not a positive in terms of executive team stability. However, these things happen. Furthermore, we have been impressed with the performance of the business and the strengthening of the relationships with franchisees under David Wild’s tenure...The underlying performance of the business remains strong, we see the room for upgrades not just in 2015 but beyond. The rating is not cheap but the delivery remains impressive and furthermore, Domino’s Pizza doesn’t have the living wage distractions of others in the sector. Given this we retain our add and see the opportunity to raise our target price [of £10] over the coming months.

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