By Scott Kanowsky
Investing.com -- Shares in Whitbread (LON:WTB) fell on Wednesday, after the Premier Inn owner named Dominic Paul - the head of the U.K. franchisee of Domino's Pizza (NYSE:DPZ) - as its new chief executive.
Paul will replace current CEO Alison Brittain in early January next year. He previously served on Whitbread's executive committee and was a managing director at the group's former Costa Coffee division.
"Following an extensive search and thorough evaluation of high-quality candidates we are confident Dominic's great track record of growing and transforming consumer brands in the UK and internationally will help to lead Whitbread in the next stage of the Group's development," said Whitbread chairman Adam Crozier in a statement.
Brittain said she was leaving Whitbread in a solid position post-pandemic, adding that the company will be left in the hands of a "strong" management team aiming to deliver future growth. During her tenure, Brittain oversaw the development of the Costa Coffee brand before it was formally sold to Coca-Cola (NYSE:KO) for £3.9 billion in 2019.
More recently, Whitbread reported a more than 20% increase in first-quarter sales compared to pre-pandemic levels, thanks in part to the lifting of COVID restrictions in Europe. The group has also pledged to invest more in salaries to combat labor shortages.
Domino's Pizza confirmed Paul's departure in a statement, adding it will now start a process to identify his successor.
London-listed shares in Domino’s Pizza Group PLC (LON:DOM) slumped following the news.