Domino's Pizza Enterprises Shares Soar 13% to Top ASX Gainers a Day After AGM Shows Sales Slide Slowing

SYDNEY — Shares of Domino's Pizza Enterprises Ltd. jumped nearly 13% on Thursday, making it one of the best performers on the Australian share market. The gain came a day after the pizza chain operator told shareholders its sales declines were easing.

Domino's shares rose A$2.87, or 12.93%, to A$25.06, closing at the day's high. The stock traded between A$23.30 and A$25.06, with about 1.83 million shares changing hands, several times its recent average daily volume.

The gain lifted Domino's market value to about A$2.4 billion. The shares are up about 30% over the past year.

The move came as the broader market slipped. The S&P/ASX 200 index closed 32 points lower, or 0.35%, pulling back after a 3.6% rally over the previous five sessions.

AGM update in focus

No new company announcement explaining Thursday's rally had been identified by the close. However, the jump followed Domino's annual general meeting in Brisbane on Wednesday, where the company gave a trading update.

The company said group same-store sales had fallen 4.6% so far in the fiscal year. That was an improvement on the 5.8% decline recorded over the first eight weeks of the year.

Chairman Jack Cowin told shareholders that Australia/New Zealand and the Netherlands recorded positive same-store sales in October 2026. However, group network sales remained below the prior year.

The shares barely moved on Wednesday after the update, edging 0.31% lower to A$22.19.

Stronger balance sheet

Domino's highlighted progress in repairing its finances at the meeting. The company reported record free cash flow of A$164.1 million for fiscal 2026, up from A$47.4 million a year earlier, excluding divestment proceeds.

Net debt fell by A$227.8 million, and net leverage dropped from 2.57 times to 1.86 times. The company also said it had made A$67 million in annualized cost savings.

Domino's reported underlying earnings before interest and tax of A$200.1 million and underlying net profit of A$121.6 million for fiscal 2026. It paid an unfranked final dividend of 32.5 Australian cents per share, up 51.2% from the previous year.

Shareholders passed all seven resolutions at the meeting. The remuneration report was adopted with 96.53% of votes in favor, avoiding a strike.

Heavily shorted stock

Domino's has been one of the ASX's most volatile large-cap stocks. It has also featured among the market's most heavily shorted shares in recent months, according to Morningstar analysis. Short sellers rushing to cover positions during rallies can amplify sharp moves in either direction.

The company has been working through a broad turnaround after swinging to its first annual loss in fiscal 2025. It has closed underperforming stores, cut deep discounting and focused on improving profits for franchise owners.

The shares were A$15.10 when Domino's released its full-year results in August and had risen 51.4% by the morning of the annual meeting, the company said.

Thursday's close pushed the stock above its previous 52-week high of A$24.58.

Analysts remain cautious. The average analyst price target was about A$20.68, well below Thursday's close, according to Yahoo Finance data.

Domino's Pizza Enterprises is the largest master franchisee of the Domino's brand outside the United States. It operates stores in Australia, New Zealand, Europe and Asia.

This article is for informational purposes only and does not constitute investment advice.