Investor turns heat on Domino’s

DOMINO’S Pizza has been too confrontational with its biggest franchisees, says one of its major investors.

The spat started last year when powerful franchisees claimed they were not receiving a big enough slice of the delivery firm’s profits – leading to them threatening to halt new store openings. Philip Macartney, at Columbia Threadneedle, a top ten shareholder, said: ‘I have concerns with the way [Domino’s] has dealt with that relationship. It’s become adversarial between the franchisees and the company. It was a failing not to understand the franchisees’ concerns and pressures. Now the horse has bolted and they are chasing their tails.’ The fund manager also turned his ire on the franchisees, claiming they had been ‘overearning a few years ago’. He added: ‘When you look at franchisees across the globe, UK franchisees are making the highest level of profits.’

Domino’s share price has fallen 36 per cent since June. The board – which faces angry shareholders at their annual meeting on Thursday – is seeking a replacement for chief executive David Wild who lost three finance chiefs in as many years.

Macartney tips the chief operating officer. He said: ‘I’ve been very impressed with Scott Bush. He has gone from bike rider to franchise owner to COO.’

A Domino’s spokesman said: ‘We have an open and ongoing dialogue with our franchisees.’