Fast food industry veteran and Domino’s executive chairman Jack Cowin has rejected suggestions he pushed the pizza chain’s chief executive out the door, with investors miffed by the recent spate of high-profile exits at the company.

Domino’s share price plunged more than 25 per cent on Wednesday before recovering some ground to close at $16.96 on news of recently hired global chief executive Mark van Dyck’s departure just seven months into the job.

Van Dyck, a former Coca-Cola executive, stepped into the role in November to replace long-time boss Don Meij, who came under pressure in the final year of his 22-year tenure over underperforming stores in Europe and Asia.

His sudden resignation deepens the leadership crisis and instability that has rocked the pizza chain. Domino’s share price has halved in the last 12 months, and is far cry from a peak of nearly $160 in September 2021.

Cowin, who owns 27 per cent of Domino’s shares and brought the Hungry Jack’s chain to Australia, is stepping in as executive chairman in the interim as a global hunt for a new chief executive begins.

“He resigned, he was not pushed,” Cowin told this masthead.

“The tension in the relationship with the board came about because he was working to a five-year plan. And we wanted a five-minute plan, you know, something much quicker, much more immediate,” he said.

Cowin said he was focused on two key areas: helping franchisees make more money and demonstrating to shareholders that earnings are growing.

But with no guarantee sales will go up, Cowin warned that more costs will need to be taken out of the business.

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One of Van Dyck’s first moves as chief executive was to close 200 underperforming stores, predominantly in Japan, some in Europe and four in Australasia, which Cowin described as “some of the low-hanging costs that should be done”.

“We need more immediate action and traction, rather than a longer-term plan, which is what he (van Dyck) was working towards.”

Australia’s fast food landscape has become more competitive, with local and global players jostling for consumer dollars. Guzman y Gomez, which listed on the ASX a year ago, has flagged ambitious expansion plans, as have players like El Jannah.

Meanwhile, US chains including Five Guys, Wingstop and Wendy’s are hoping to establish a long-term presence Down Under.

Investors are sending two clear messages: can you hire and retain top talent, and who do I trust now? Without that belief and trust, forecasts, briefings and guidance go out the window.

InvestorHub co-founder and CEO Ben Williamson

Fast food chains around the world are coming under pressure, with sales either declining or flat, but Domino’s “absolutely” still has a strong growth trajectory, Cowin said.

“There is no great impending [financial] disaster about to be announced, that’s not the issue. The issue is forward growth, and how quickly we get that.”

Fund managers and market analysts have described the exit as surprising and unexpected. Ten Cap founder and lead portfolio manager Jun Bei Liu said Cowin “drove the decision”.

“[He] will be viewed as a steady hand. But the challenge is you don’t have anybody there now,” said Liu.

The fund manager is considering the share price fall as a buying opportunity, but will wait to see Cowin’s next steps. “They haven’t figured it out. Whether it has to be cost-cutting, innovation, or investment in technology, quite frankly, they don’t have anyone [leading the business].“

InvestorHub co-founder and CEO Ben Williamson said Domino’s had a trust gap, not just a leadership gap.

“Investors are sending two clear messages: can you hire and retain top talent, and who do I trust now? Without that belief and trust, forecasts, briefings and guidance go out the window,” said Williamson.

“Investors buy based on future performance. If they don’t believe in your momentum, they’ll vote with a sell order.”

Meanwhile, eToro market analyst Josh Gilbert said the CEO departure would take away from the focus on growth in the business.

“I think they need a bit more than a CEO,” he said. “It doesn’t look like an exciting growth story.”

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Van Dyck said it had been a privilege to lead Domino’s through a period of transformation.

“With a clear strategy and strong team in place, I believe the time will be right at the end of this calendar year to hand over to the next CEO. My focus in the months ahead will be on supporting a smooth transition,” he said in the ASX statement.

Domino’s Pizza Enterprises has the franchise rights to own and operate Domino’s in Australia, New Zealand, France, Belgium, the Netherlands, Monaco, Luxembourg, Germany, Japan, Malaysia, Singapore, Taiwan and Cambodia.