Domino's Pizza Enterprises Ltd (ASX: DMP) executive chair Jack Cowin just bought himself an extra $5 million worth of shares.
The trade was revealed in a 'Change of Director's Interest Notice' that Domino's Pizza lodged with the ASX last Thursday.
Cowin bought 335,000 Domino's Pizza shares for $15.11 apiece on-market two days after the company's FY25 report.
Cowin is Domino's Pizza's largest shareholder with a 26% stake.
The Canadian-born billionaire is famous for founding Hungry Jack's and growing it from one store in 1971 to 440 stores today.
Cowin's motivation for buying more Domino's Pizza shares is unknown.
However, it's common for senior executives to adjust their personal holdings soon after a company's latest financial report.
That's when a company's financial and operational health is most transparent, so it's the best time for directors to trade.
Cowin's purchase also followed a more than 20% share price dive after the company released its results.
Image source: Getty Images
Domino's Pizza shares tumble after FY25 report
For FY25, the company reported a 0.9% drop in network sales to $4.15 billion and a 3.1% decline in revenue to $2.3 billion.
Earnings before interest and tax (EBIT) fell 4.6% to $198.1 million. The company declared a final dividend of 21.5 cents per share.
Domino's Pizza shares tumbled 22% to an intraday low of $15.07 on the day of the report.
That wasn't the company's lowest point this year.
The ASX 200 consumer discretionary stock fell further over the following fortnight.
The Domino's Pizza share price slumped to a 12-year low of $14.12 last Wednesday.
Domino's shoots down speculation of a capital raise
The slump in the share price and the volume of trading post-results led to the ASX sending Domino's an official 'please explain'.
The ASX asked Domino's Pizza several questions, including why its share price had changed so materially after the results.
Domino's said several factors may have influenced trading, including speculation of a capital raise.
The company said:
DMP believes that in the near-term, debt levels will reduce, and it is not currently considering an equity capital raising.
Another factor may have been investors' concerns over Domino's ability to execute its growth strategy amid changes to the executive team, alluding to the resignation of CEO Mark van Dyck in July after just eight months in the job.
The fifth senior management change for 2025, van Dyck's resignation prompted Cowin, then the company chair, to take over the operational reins as executive chair.
Other factors suggested by Domino's included its strategy to reduce G&A costs without providing quantification and timing.
Domino's also pointed out that there was adverse market sentiment toward companies reporting weak trading results.
Snapshot of Domino's Pizza shares
Following the transaction, Cowin owns 24.56 million shares via three entities, equating to a 26% stake.
Domino's Pizza shares closed at $14.57 on Tuesday, down 1.35%, while the S&P/ASX 200 Index (ASX: XJO) slipped 0.52%.
