Domino’s Pizza (ASX:DMP) has seen its shares rocket +17% in early arvo trade on Tuesday after reports hit The Fin indicating Bain Capital is looking at a (potential) $4 billion takeover for the struggling chain, which, even after today’s share price action, is still clocking 1Y returns of negative -50%.
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Domino’s paused trades on Tuesday ahead of a further undisclosed announcement. According to aforementioned reports, Bain Capital is eyeing DMP’s Australian and New Zealand operations, which makes sense given Domino’s has been having more strife than success overseas in recent history.
(Worth noting is a former Bain Capital executive currently sits on the board of Domino’s, something also highlighted by The Fin.)
Price action on Tuesday ultimately reflects what could be keen interest from any long-term shareholders who have watched returns suffer. After briefly hitting pandemic-mania levels on the lockdown thematic, the stock’s been struggling since.
For that, you don’t need to look beyond the 5Y share price chart.
Not helping matters is the DMP Group CEO quit in August after ANZ CEOs also ditched the ship, with well-known Australia CEO Don Meij retiring after 22 years at the helm just last November. Since then, things have gotten worse.
So can Bain turn the ship around? That remains to be seen. Bain was instrumental in re-listing Virgin on the ASX, finally, earlier this year, and has generally been sticking its nose all around town in recent history: it was involved in the Insignia Financial battle, is thought to have just taken an interest in Iress, and was also poking around during the Star Entertainment fiasco’s early days.
DMP last traded at $18.13/sh today.
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