Domino’s Pizza Group PLC (LON:DOM) shares rose on Tuesday as it said executive Matt Shattock will take over as chairman of the delivery chain with effect from 16 March.
Shattock is currently the non-executive chairman of Beam Suntory Inc, the maker of Jim Beam bourbon and Courvoisier cognac, and has also held senior roles at chocolate maker Cadbury and consumer goods giant Unilever PLC (LON:ULVR).
READ: Domino’s Pizza writes down international businesses by £35mln
The new chairman will likely have a lot on his plate when he takes the helm next week as Domino’s struggles to recruit other new board members and deal with an ongoing row with franchisees.
Domino’s previous CEO, former Tesco executive David Wild, and its former chairman Stephen Hemsley both stood down in August amid a row with franchisees over who runs most of its 1,100 stores and how profits are distributed.
This was followed in December by the tragic death of its chief financial officer David Bauernfeind on Boxing Day while he was on holiday with his family in Mauritius.
The company therefore currently finds itself without a permanent CEO or CFO as it struggles to rebuild relationships with its franchisees and to make the business more profitable.
Domino’s decided last year to offload its international arms as they were loss-making, with its full-year results to 29 November 2019 confirming a £35mln writedown against its operations in Iceland, Sweden, Switzerland and Norway.
The company has since agreed to sell off its unprofitable Norwegian business, although it will pay around £10mln for the privilege.
“This is an important moment in the turnaround of Domino's, and I am delighted to have secured a Chairman of Matt's calibre”, said interim chairman Ian Bull.
“He has extensive and highly relevant experience in the consumer sector, including B2B and B2C relationships, which will be crucial as Domino's seeks to rebuild relationships with its franchisees and return to profitable growth”, Bull added.
Domino’s shares were up 8% at 307.6p in lunchtime trading.