Domino's Pizza Enterprises Jumps Nearly 13% as Sales Contraction Slows
Domino's Pizza Enterprises saw its shares surge almost 13% after revealing at its annual meeting that same-store sales declines are moderating across key regions.
Shares of Domino's Pizza Enterprises Ltd. surged 12.93% on Thursday to close at A$25.06, reaching the peak of the session's trading range. The rally followed the Brisbane annual general meeting on Wednesday, where company leadership informed investors that recent sales declines were easing across its international operations. The stock saw about 1.83 million shares trade hands, outpacing its typical trading volume.
During the trading update, the operator disclosed that group same-store sales dropped 4.6% so far in the fiscal year, demonstrating an improvement compared to the 5.8% decrease reported in the opening eight weeks. Chairman Jack Cowin noted that positive same-store sales trends were established in October 2026 across Australia, New Zealand, and the Netherlands, although network sales across the entire group still trailed the prior year.
The franchised operator also underscored its ongoing balance sheet turnaround efforts after suffering its first annual loss in fiscal 2025. Fiscal 2026 free cash flow reached a record A$164.1 million, excluding divestments, rising from A$47.4 million in the previous year. Net debt decreased by A$227.8 million as net leverage dropped to 1.86 times from 2.57 times, supported by A$67 million in annualized cost reductions and an unfranked final dividend of 32.5 Australian cents per share.
Morningstar analysis noted that the operator has been among the most heavily shorted equities on the Australian exchange, meaning short sellers buying to cover positions may have intensified Thursday's sharp move. Despite the one-day leap taking the stock above its former 52-week peak of A$24.58, Yahoo Finance data indicates that analysts keep an average price target of about A$20.68, maintaining a cautious stance.
The company serves as the biggest master franchise operator representing the Domino's network beyond American borders, managing outlets throughout Asia, Europe, New Zealand, and Australia. In the United States, parent company Domino's Pizza, Inc. (DPZ) traded at $296.10 on October 13, 2026, after falling 4.8% on that day amid ongoing scrutiny of its historical valuation metrics and insider selling.