CEO That Ended Awful Pizza at Domino's (DPZ) is Unlikely to Takeover at Chipotle (CMG)
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J. Patrick Doyle, Chief Executive Officer of Domino’s (NYSE: DPZ) and the force behind the company’s marketing win nearly a decade ago when it admitted its pizza was "the worst," said he will leave the company on June 30.
Doyle didn't comment on his plans, opening the door to speculation he could be tapped to lead Chipotle (NYSE: CMG), the restaurant chain that has struggled with food safety and public relations issues, but for now this appears unlikely.
"One of the great honors and opportunities of my professional life was being named CEO of this incredible brand in early 2010," Doyle said in a statement. "… I will leave Domino's knowing that it is in great hands."
Richard Allison, President of Domino's International, will take over as CEO of Domino’s.
In the view of Jon Tower, an equity analyst at Wells Fargo, the departure does not mean Doyle will be moving on to run another restaurant concept.
“While the language in the release leaves some room for interpretation around his next destination (with some investors discussing the possibility he’s moving on to another spot in the industry), our meeting with the company leads us to believe Patrick’s next stop will not be at the helm of another restaurant concept,” wrote Tower in a note to clients, following a meeting with Domino's CFO, Jeff Lawrence.
Doyle himself refuted the idea he'll join Chipotle in an interview with the Wall Street Journal, stating, “No, that's not happening.”
Doyle is not planning to jump back into the restaurant business soon and will decide later what to do, the Journal reported.
As for Domino’s, major long-term changes to its plans aren’t expected.
“… bench depth at Domino’s is strong and while we cannot attest to the new CEO’s ultimate plans for the business, we do not anticipate a whole-hearted change in long-term plans for the company or for shareholders with this CEO transition,” said Well Fargo’s Tower.
Domino’s declined nearly 5 percent intraday Wednesday on news of Doyle's departure.
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