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Tag: andrew gregory

  • Domino’s CEO Andrew Gregory Takes Control of ANZ as Merrill Pereyra Exits

    Domino’s CEO Andrew Gregory Takes Control of ANZ as Merrill Pereyra Exits

    Domino’s Pizza Enterprises Group CEO and Managing Director Andrew Gregory has taken direct control of the Australia and New Zealand business, effective immediately, to accelerate the company’s reset plan.

    The move follows a mutual agreement for ANZ CEO Merrill Pereyra to leave the business after being appointed to the role earlier this year.

    Pereyra, who holds more than 30 years of quick-service restaurant experience, led a phase focused on reducing costs, paying down debt, strengthening cash flow, and improving franchise partner returns while Domino’s searches for a successor.

    Management shift at the regional unit

    The sudden change puts group-level leadership back into direct line management over the home territory. Regional operations teams will report directly to Gregory while the board conducts an executive search.

    Pereyra previously served as chief executive of Domino’s Pizza Indonesia and held regional leadership roles at McDonald’s across a 30-year industry career. His brief tenure running the Australia and New Zealand business focused on stabilizing unit economics after successive margin squeezes.

    “The reset has established a stronger foundation for the business and remains on track,” chairman Jack Cowin said. “Australia/New Zealand is critical to the Group’s success, and the Board supports Andrew taking direct responsibility to increase the pace of execution while maintaining a clear focus on sustainable, profitable growth for franchise partners.”

    Restructuring and franchisee economics

    The company’s reset plan centers on four financial levers: cutting overhead costs, accelerating debt paydown, lifting free cash flow, and restoring store profitability. Ingredient inflation and higher labor costs strained store margins across Australia and New Zealand over recent trading periods.

    Direct corporate intervention in divisional management signals that the board wants faster cost discipline. Franchisee relations remain the primary operational risk. Store owners need immediate relief on input costs and delivery margins to protect cash returns.

    Quick service restaurant leadership

    Gregory brings extensive quick-service restaurant experience to the operational post, including a previous stint as chief executive of McDonald’s Australia. That background gives group management deep familiarity with franchised supply chains, digital ordering platforms, and local store marketing.

    Fast-food operators across the region face a more cautious consumer base cutting back on discretionary deliveries. Competitors have leaned heavily on price discounts and value bundles. This forces franchisors to balance transaction volume against franchisee gross margins.

    Search for permanent leadership

    Domino’s Pizza Enterprises confirmed the search for a dedicated regional chief executive is underway. The existing divisional leadership team will maintain daily field support and supply logistics during the transition.

    Progress under Gregory will hinge on how quickly store profitability recovers before a new regional chief executive steps in.

  • Domino’s Cuts Discounts to Lift FY26 EBIT to $200.1 Million as Asian Earnings Jump

    Domino’s Cuts Discounts to Lift FY26 EBIT to $200.1 Million as Asian Earnings Jump

    Domino’s Pizza Enterprises lifted full-year underlying operating profit 1 per cent to $200.1 million in FY26, curbing heavy discounting and pruning underperforming stores across Asia.

    Total network sales fell 6.8 per cent to $3.87 billion, while group same-store sales dropped 4.1 per cent as the franchisor traded transaction volume for franchisee margin relief.

    Average franchise partner profitability rose 11.3 per cent across the network, pushing free cash flow to $164.1 million. The Brisbane-headquartered company captured $35.3 million in realized savings during the fiscal year toward an annualised target of $67 million, while global corporate overhead fell 5.8 per cent through stricter discretionary spending controls.

    Asia store closures lift regional margins

    Asia delivered the sharpest regional earnings rebound. Underlying earnings before interest and taxes across the Asian business climbed 19.7 per cent despite a 6.7 per cent drop in same-store sales, helped by tighter cost controls and the closure of unprofitable locations, particularly in Japan.

    Performance across Western markets was more mixed. Underlying operating profit in Australia and New Zealand slipped 5.9 per cent alongside a 4.7 per cent drop in same-store sales as the chain reduced promotional price cuts. European earnings rose 2.6 per cent against a 2.2 per cent same-store sales decline, with steady trading in the Benelux markets outweighing sluggish demand in France and Germany.

    Pricing discipline replaces mass vouchers

    The margin turnaround reflects a broad retreat from the low-price delivery wars that eroded quick-service restaurant returns across the Asia-Pacific region over the past three years. Fast-food operators in Japan and Australasia have faced stubborn ingredient costs and high delivery wages, forcing franchise systems to protect store-level solvency rather than chasing top-line market share.

    Executive chairman Jack Cowin said the company deliberately sacrificed short-term order counts to stabilize partner balance sheets. Group chief executive Andrew Gregory will now test whether the chain can rebuild customer order frequency in FY27 through menu execution and clearer base pricing without returning to blanket discount vouchers.