The rumour mill dished out a hot and fresh slice on Tuesday that saw Domino's' shares rise by 17% before being placed in a trading halt. Interestingly, the spicy rise in the share price was discussed on our show just over a month ago. Here's what's happening.

What’s happening?

Shares in Domino’s Pizza Enterprises (ASX: DMP) surged as much as 17.3% on Monday after a report in the AFR suggested private equity giant Bain Capital is preparing a $4 billion (US$2.6bn) takeover bid for the troubled pizza chain.

The move sent the stock into a trading halt shortly after the news broke, pending an announcement from the company.

According to the AFR’s sources, Bain is in the early stages of exploring an acquisition of Domino’s, which has suffered a series of profit downgrades and lost nearly half its value over the past year as rising costs and a post-pandemic demand slump hit earnings.

Why Bain?

Bain Capital’s rumoured interest in Domino’s comes after a string of high-profile buyouts in Australia and overseas.

Most recently, Bain acquired Virgin Australia out of administration in 2020, executing a turnaround strategy that saw the airline relisted on the ASX in November this year.

Despite a brief stumble in recent weeks, Virgin Australia Holdings is still up 7% since returning to the bourse, showcasing Bain’s reputation for revitalising underperforming brands.

Bain’s interest in Domino’s is not out of character. The private equity firm has history in the pizza sector, having previously invested in Domino’s Pizza Inc in the US, where it played a pivotal role in modernising operations and driving a turnaround that helped transform the company into the global fast-food giant it is today.

Given Domino’s Australia’s recent struggles with inflation and competitive pressure, investors see Bain as a credible suitor capable of restoring growth.

Told you so!

The speed of the market’s reaction has caught some off guard. Unless, of course, you were listening to Jun Bei Liu and her recent appearance on Switzer Investing TV.

The TenCap portfolio manager appeared on our show almost exactly a month ago, flagging Domino’s as one of her top buyout candidates. “There’s a real opportunity for value here if someone steps up to the plate,” she said on the 22nd of September.

At the time, sceptics (including some of us) questioned whether Domino’s could be a target. Today, with DMP shares up 31% since that segment aired, it’s fair to say the critics have sauce on their faces.

To put it in hard numbers: a $10,000 investment in Domino’s on the day Jun Bei Liu went on air would be worth $13,100 now. That's a $3,100 gain in just over a month, triggered by renewed takeover interest and a sudden buying frenzy.

Take a look at her prediction from our 22 September 2025 show here: