Berkshire Hathaway invests $550M in Domino’s Pizza

Warren Buffett’s Berkshire Hathaway built a new stake in Domino’s Pizza last quarter. The Omaha-based conglomerate bought more than 1.2 million shares of the pizza chain. This amounts to a stake worth about $550 million at the end of September. Given its relatively small size in Berkshire’s extensive portfolio, it’s possible that Buffett’s investing lieutenants, Ted Weschler and Todd Combs, could be behind the investment. Shares of Domino’s surged more than 8% in extended-hours trading following the news. The world’s largest pizza chain had recently missed Wall Street estimates for third-quarter comparable sales growth in the U.S. This was due to increasing competition for cost-conscious customers. Shares of Domino’s have underperformed the broader market this year. They have appreciated by just 6%, while the S&P 500 has gained nearly 25% in 2024.

Buffett’s new stake in Domino’s

Berkshire Hathaway also took a small stake in swimming pool supplier Pool Corp. last quarter. The holding was valued at about $152 million at the end of the third quarter. This investment could be another value bet, as Pool shares have lost 10% this year. In the third quarter, Buffett’s holding company nearly dissolved its recent position in Ulta. It sold about 97% of the shares it had just purchased in the second quarter. Shares of Ulta edged up just 0.8% in the third quarter after plummeting 26% in the prior period. Berkshire’s sales of its top holdings, including Apple and Bank of America, had been previously disclosed. Most of its large stakes remained unchanged last quarter.