Domino's Pizza Enterprises Ltd (ASX:DMP) saw its stock price surge 9.94% during intraday trading on Thursday, marking a significant upward movement for the Australian fast-food franchiser.
The sharp increase follows the company's return to net profit in its latest half-year results, coupled with the announcement of an A$0.25 per share dividend. Additionally, the appointment of experienced restaurant executive Drew O'Malley to the board has bolstered investor confidence in the company's leadership and strategic direction.
Market analysis suggests the stock may have been undervalued prior to the movement, with a widely followed fair value estimate of A$21.23 compared to its previous closing price of A$19.27. The combination of improved financial performance, shareholder returns through dividends, and strengthened governance appears to have driven the substantial intraday gain.