Domino's Pizza Q3 Preview: Warren Buffett Is Buying, Will More Investors Follow Suit?

Core Viewpoint - Domino's Pizza has gained attention from Warren Buffett's Berkshire Hathaway, which has increased its stake in the company, as it prepares to release its third-quarter financial results [1][4]. Financial Performance - Analysts expect Domino's to report third-quarter revenue of $1.14 billion, an increase from $1.08 billion in the same quarter last year [1]. - The company is projected to report earnings per share of $3.98, down from $4.19 in the previous year [2]. - Domino's has missed revenue estimates in eight of the last ten quarters but has beaten earnings per share estimates in eight of the last ten quarters [2][5]. Analyst Sentiment - Analysts have been lowering their price targets for Domino's ahead of the quarterly results, with various firms adjusting their ratings and targets [3][8]. - Recent price target adjustments include Jefferies lowering from $490 to $455, Piper Sandler from $477 to $443, and Barclays from $425 to $405 [8]. Berkshire Hathaway's Stake - As of the end of the second quarter, Berkshire Hathaway owns 2,633,868 shares of Domino's, representing approximately 7.8% of the company, valued at around $1.1 billion [4]. - Berkshire Hathaway has increased its position in Domino's by 1% in the second quarter, following a 10% increase in the first quarter [4]. Market Position and Competition - Domino's operates around 2,200 locations, while its competitor Pizza Hut has about 950 locations [9]. - The re-entry of rival Papa John's into the market could impact Domino's market share, especially with Papa John's plans for expansion in India [7][9]. Brand Strategy - Domino's is undergoing a brand refresh for the first time in 13 years, aiming to attract younger customers with new designs and marketing strategies [10][11]. - The refresh includes new employee uniforms, pizza box designs, and a new jingle, reflecting the company's commitment to maintaining its market position [10][11]. Recent Performance and Stock Movement - Domino's stock is currently up 0.7% to $409.17, with a year-to-date decline of 5.9% in 2025 [12].