Domino's Pizza slumps after unexpected CFO departure

Domino's Pizza said on Tuesday that chief financial officer Rachel Osborne left the group a day earlier, as it reaffirmed its outlook for the year.

The company will now begin the search for Osborne's successor and an announcement will be made in due course.

Chairman Stephen Hemsley said: "We are grateful for Rachel's hard work and commitment in helping Domino's to continue its strong growth. We wish her every success for the future."

Osborne said: "I've very much enjoyed my time at Domino's and I now look forward to pursuing other career opportunities."

"The board reiterates the outlook it gave at the time of its full year results in March, and the confidence in the company's performance in 2018 and beyond," it said, adding that interim results for the six months to 30 June will be out on 7 August.

Liberum analyst Wayne Brown said: "Why Domino’s Pizza Group cannot hold onto their finance directors is a very good and valid question. Since the departure of Lee Ginsberg, who was a long-standing and highly recognised FD, the group has churned through three since 2015 and with the announcement today that Rachel Osborne has handed in her resignation effective 11 June 2018, the group are on to their fourth.

"We question whether there is an internal cultural issue, whether she cannot see a path to maximising her remuneration scheme or other issues? Whatever the answer is, it does not look good and begs corporate governance questions. In a year when the CEO’s LTIPs vest we would like to see a more detailed analysis of the earnings per share support provided by share buybacks, M&A and underlying performance and on what basis and why the LTIPs are calculated."

At 0940 BST, the shares were down 6% to 362.10p.