Berkshire Hathaway Sells Domino's Pizza Shares, Analysts Question the Decision
Greg Abel has taken over as CEO of Berkshire Hathaway and made changes to its equity portfolio. One notable move was selling all shares in Domino’s Pizza during Q1 this year after holding them for six consecutive quarters under Warren Buffett. The position had grown significantly from nearly $550 million at the end of 2024 to almost $1.4 billion by early 2025. Despite Berkshire's exit, analysts argue that Domino’s Pizza still holds strong long-term fundamentals and market potential. As the world's largest pizza chain with a growing franchise model, it has expanded its global presence significantly in recent quarters. Same-store sales have been modest but reflect broader consumer spending trends amid inflationary pressures. The company also continues to gain market share in quick-service pizza. From an investment perspective, Domino’s stock is currently undervalued compared to both the S&P 500 and historical averages. Its P/E ratio has dropped from 24 at the start of the year to 18 as of September 11, offering a potential buying opportunity for long-term investors.
Tickers: $DPZ
Topics: Berkshire Hathaway CEO transition Domino's Pizza stock sales