Domino’s executive chair Jack Cowin buys extra $3m worth of shares in troubled pizza chain
Fast food billionaire chair Jack Cowin has bought $3 million worth of shares in the embattled pizza chain, where he is currently leading a turnaround by ditching heavy discounts to rebuild profitability.
Fast food billionaire chair Jack Cowin has bought $3 million worth of shares in the embattled pizza chain, where he is currently leading a turnaround by ditching heavy discounts to rebuild profitability.
A notice to the Australian Securities Exchange on Monday showed Mr Cowin — also the founder of Hungry Jack’s — acquired 170,000 shares on market at $17.97 each through one of his private entities called Corom.
Domino’s shares closed 1.1 per cent lower to $18.86.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.Mr Cowin, already the company’s biggest shareholder with a 26 per cent stake, became Domino’s interim executive chair last July after the abrupt exit of chief executive Mark van Dyck, who was in the role less than a year.
Mr Cowin has been cutting back on Domino’s heavy discounting to focus on delivering an “everyday low price” model — similar to Bunnings’ strategy where it does not run regular promotions and instead offers consistent pricing — in a bid to make franchisees profitable in the long-term.
Unveiling half-year results last month, Mr Cowin said franchise partner profitability had increased to its highest level in three years as a result of the move, despite losing 10 per cent of customers who have stopped buying its pizza.
It also impacted sales, which fell 5.5 per cent to $1.1 billion in the first half.
“The objective was can we make more money for the franchisees at the store level . . . and that has positively worked,” Mr Cowin told The Nightly last month.
“You lose the people that will only go if they get a super heavy discount, they’re price driven . . . but we’re not making any money on those so it doesn’t really impact the company.”
eToro market analyst Josh Gilbert at the time said Domino’s delivered a result where fewer pizzas were sold, yet the business was in better shape that it was a year ago.
“The fact that the company deliberately sacrificed earnings in Australia to redirect savings back to franchise partners tells you exactly where management’s priorities lie right now,” he said.
The pizza giant has also tapped former McDonald’s Australia and New Zealand boss Andrew Gregory to take on the top job. He will take up his role with Domino’s no later than August 5.
