Private equity powerhouse Bain Capital is exploring a potential acquisition of Domino’s Pizza Enterprises (ASX: DMP), sending the struggling pizza chain’s shares soaring 23 percent in early trading before a trading halt was implemented.
The Sydney-listed company, which holds master franchise rights for Domino’s across Australia, New Zealand, and several Asian and European markets, could be valued at up to A$4 billion (US$2.6 billion) under the proposed deal.
The discussions remain preliminary and informal, with no advisers yet appointed, according to sources briefed on the matter cited by the Australian Financial Review.
Share Price Rockets on Takeover Speculation
Domino’s shares jumped from A$15.45 to as high as A$19.00 on Tuesday morning before trading was paused at 11:22 am local time.
The stock had been languishing near 52-week lows after a turbulent period that saw the company close 205 underperforming stores across its international operations.
At the paused price of A$18.13, the company’s market capitalisation stood at approximately A$1.7 billion. However, any deal would likely value the enterprise significantly higher when accounting for debt.
Domino’s Share Price
Bain’s Interest in Australia’s Strongest Markets
The report indicates Bain Capital is particularly interested in Domino’s Australian and New Zealand operations, which are considered the company’s strongest performing businesses despite broader challenges.
Australia and New Zealand operations delivered modest same-store sales growth of 0.6 percent in the first half of 2025, compounding on strong prior year results. The region generated A$67.7 million in earnings before interest and tax, up 7.6 percent year-on-year.
These markets contrast sharply with struggles in Japan and Europe, where the company has faced significant headwinds.
Key Domino’s performance metrics:
- Australia/NZ EBIT: A$67.7M (up 7.6%)
- Asia EBIT: A$17.0M (down 19.0%)
- Europe EBIT: A$32.3M (down 11.1%)
- Stores closed globally: 205 (172 in Japan alone)
Billionaire Backer Steps Back Into Driver’s Seat
The timing of Bain’s approach comes during a period of significant leadership upheaval at Domino’s.
Billionaire fast-food mogul Jack Cowin, who built his fortune through Hungry Jack’s (Australia’s Burger King franchise), returned as interim Executive Chair in July 2025 after CEO Mark van Dyck announced his departure.
At 83, Cowin is Domino’s largest shareholder and has taken direct control to stabilise operations and guide the search for a new chief executive. Van Dyck’s exit, effective 23 December 2025, followed just eight months in the role.
The company has closed hundreds of underperforming stores and restructured leadership across IT, marketing and finance as part of a turnaround strategy.
Bain’s Track Record: Virgin Australia Success Story
Bain Capital’s interest in Domino’s follows its highly successful turnaround of Virgin Australia, which returned to the ASX in June 2025 after Bain rescued the airline from administration in 2020.
The private equity giant acquired Virgin for an undisclosed sum during the pandemic, streamlined operations, cut costs, and successfully relisted the carrier at a A$2.3 billion valuation.
Virgin shares surged 11.3 percent on their first day of trading, validating Bain’s restructuring approach. The firm retained a 40 percent stake, positioning itself for further gains.
The Australian Financial Review reported that Bain views the potential Domino’s deal through a similar lens, seeing opportunity to revive underperforming operations while preserving value in the stronger Australian and New Zealand businesses.
What This Means for Domino’s Share Price
Trading in Domino’s shares resumed later on Tuesday afternoon, closing at A$15.24, still representing significant gains from pre-announcement levels but well below the morning’s peak.
The stock’s 52-week range of A$13.11 to A$36.68 illustrates the volatility the company has experienced as it grapples with international challenges.
Analysts note that any formal takeover bid would likely need to offer a substantial premium to current trading levels, particularly given the strategic value of the Australian franchise rights.
Share price snapshot (28 October 2025):
- Current price: A$15.24
- Day’s range: A$15.06 – A$19.00
- Market cap: ~A$1.45 billion
- 52-week range: A$13.11 – A$36.68
Bain’s Historic Ties to Domino’s Brand
Bain Capital has deep familiarity with the Domino’s brand, having acquired a majority stake in the US parent company in 1998 before taking it public in 2004.
The firm subsequently acquired Domino’s Pizza Japan’s master franchisee Higa Industries in 2010, which it later sold to Domino’s Pizza Enterprises in 2013 for approximately ¥12 billion.
This institutional knowledge of the Domino’s system could provide Bain with advantages in executing a potential turnaround of the Australian-listed entity.
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What Happens Next?
No formal offer has been tabled, and sources caution that discussions remain at an early stage. Domino’s Pizza Enterprises is not obligated to entertain any proposal.
However, the company’s board, led by Cowin, will need to carefully evaluate whether a sale represents the best path forward for shareholders or whether the current turnaround strategy should be given more time to yield results.
The company is scheduled to hold its annual general meeting in the coming months, where shareholders may seek clarity on the board’s strategic direction.
Market watchers will be closely monitoring for any updates from either party, particularly as the December CEO departure deadline approaches.
