A Republican victory in the US presidential election won’t be a “happy situation” if Donald Trump imposes hefty tariffs on imports from China and elsewhere.
But Australia might not have too much to worry about, despite Mr Trump’s promise to voters, Domino’s Pizza chairman and fast food mogul Jack Cowin said on Wednesday.
“They (the US) sell a lot more to us than we buy from them,” he told shareholders at the company’s annual meeting.
“So we are probably less vulnerable than a China or the EU countries, where they are pumping product into the US.
“Obviously, we will stop buying US products if you’re going to be difficult and try and hurt us in the process.”
As shareholders entered the meeting on Wednesday afternoon, Mr Trump was well ahead in the race for the White House.
Meanwhile, shareholders said farewell to outgoing Domino’s CEO Don Meij who told the meeting that while customers might be feeling the pinch of living costs, that doesn’t mean they want a cheaper pie.
“Customers don’t want cheap – they want more … more of what they love – more toppings, more choice on more occasions,” he said.
Domino’s, which claims to sell more than eight pizzas a second across its network, announced on Tuesday that Mr Meij was leaving after 22 years as CEO, effective at the close of the meeting.
He’s making way for new CEO Mark van Dyck, who’s been an advisor to the Domino’s board for the past year.
Domino’s CEO Don Meij (L) is leaving the company but will have an advisory role for the next year. (Darren England/AAP PHOTOS)
Mr van Dyck, who addressed shareholders for the first time on Wednesday, will now work with Mr Meij on an advisory basis over the next 12 months to smooth the transition.
Mr Meij, 55, who started as a pizza delivery driver and was known for his close relationships with Domino’s franchisees, spent 37 years with the company.
Mr van Dyck moved quickly on Wednesday to reassure the company’s Mr and Mrs Pizza franchisees they were the heartbeat of Domino’s “and their profitability is our profitability”.
“I’ll spend time listening to what they have to say and ensuring we’re aligned on shared goals,” he said.
Mr Cowin told one shareholder the company was looking to “reset” the business and wasn’t happy with its recent past performance.
Ahead of the meeting, Domino’s disclosed sales for the first 17 weeks of the 2024/25 financial year fell 1.2 per cent.
“Yes, the economies in most of our markets are weak … and yes, we need to act urgently … to restore shareholder value,” Mr van Dyck said.
Higher prices for ingredients and wages have generally weighed on the overall business, as well as lacklustre sales in France and Japan where it is in the process of closing up to 10 per cent of its stores.
It currently has around 3700 stores in 12 countries – including the US, Germany, Singapore, Taiwan and Malaysia.
Domino’s still has ambitions to almost double store numbers to 7100, although it admits it might take longer to get there.
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