The Domino's boss just sold off $8 million worth of company shares. Here's the lowdown

The Domino's boss is having his pizza and eating it…

| More on:
A team in a corporate office shares a pizza while standing around a table chatting about the Domino's share price and Pizza Hut's threat to the business

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Domino's share price is pushing higher despite some insider selling news
  • The pizza chain operator's CEO has sold $8.3 million worth of shares
  • Domino's explained that rising interest rates are behind the sale

In afternoon trade, the Domino's Pizza Enterprises Ltd (ASX: DMP) share price is edging higher despite some negative news.

At the time of writing, the pizza chain operator's shares are up 0.5% to $49.19.

Domino's share price higher despite insider selling

The Domino's share price is rising today despite the company revealing that its CEO, Dom Meij, has made a major share sale.

According to the release, Meij sold 150,000 Domino's shares via an on-market trade on 23 February.

The Domino's boss received an average of approximately $55.35 per share, which is 12.5% higher than the current share price, and represents a total consideration of $8.3 million.

It is worth noting that Mr Meij still has a considerable holding, so his interests remain firmly aligned with shareholders. Following the sales, the CEO holds a total of 1,667,969 Domino's shares.

Why did the Domino's boss sell shares?

Domino's has provided an explanation for the sales. It revealed that the funds from these share sales will be used to take a prudent approach to reduce Mr Meij's personal borrowings in a period of rising interest rates.

The company also stressed that Meij is committed to the company. It highlights that he recently signed a five-year employment contract and Brisbane remains his principal place of residence.

Mr Meij also commented on the share sales. He said:

I appreciate there is no ideal time to sell any shares, but my long-term track record shows my alignment with the future of our business and interests of shareholders and franchisees. I'm looking forward to our team delivering an improved performance this Half, and on our long term goals, and I will be leading that effort.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

A couple of friends at a rooftop party enjoying some hot and tasty Domino's pizza
Dividend Investing

Own Domino's shares? Today is pay day!

Eligible Domino’s shareholders can expect some welcome passive income today.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.
Consumer Staples & Discretionary Shares

How a potential demerger could deliver a 10% upside for this ASX 200 stock

Investors might have even more reasons to love this ASX 200 stock if rumours are true.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Consumer Staples & Discretionary Shares

Why Goldman Sachs expects market-beating returns from Super Retail shares

Goldman Sachs thinks this retail share could offer big returns for investors.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
52-Week Highs

Why is the A2 Milk share price up 46% year to date and at a 52-week high?

This infant formula company's shares have delivered the goods this year.

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Consumer Staples & Discretionary Shares

2 things I'm waiting for before buying Coles shares

I'm waiting for two things before I add Coles to my share portfolio.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Consumer Staples & Discretionary Shares

If I'd put $5,000 in Wesfarmers shares at the start of 2024, here's what I'd have now

Are investors smiling this year? Let's see how its shares have performed.

Read more »