Domino's Pizza Inc $DPZ Shares Bought by Berkshire Hathaway Inc

Key Points

• Berkshire Hathaway boosted its Domino's stake by 13.2% in Q3 to 2,981,945 shares (about 8.83% of Domino's) worth $1.287 billion, making DPZ the firm's 22nd-largest holding and roughly 0.5% of Berkshire's portfolio.
• Domino's raised its quarterly dividend to $1.99 (from $1.74), an annualized $7.96 that yields about 2.0%, with an ex-dividend/record date on March 13 and payment on March 30.
• The company reported $5.35 EPS (missed by $0.03) and $1.54 billion in revenue (up 6.4% YoY); analysts' consensus rating is "Hold" with an average target near $475.71.

Berkshire Hathaway Inc grew its holdings in shares of Domino's Pizza Inc (NASDAQ:DPZ - Free Report) by 13.2% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,981,945 shares of the restaurant operator's stock after buying an additional 348,077 shares during the period. Domino's Pizza accounts for about 0.5% of Berkshire Hathaway Inc's holdings, making the stock its 22nd largest holding. Berkshire Hathaway Inc owned about 8.83% of Domino's Pizza worth $1,287,335,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Westpac Banking Corp lifted its stake in Domino's Pizza by 31.2% during the second quarter. Westpac Banking Corp now owns 101 shares of the restaurant operator's stock worth $46,000 after purchasing an additional 24 shares during the last quarter. Lafayette Investments Inc. boosted its holdings in Domino's Pizza by 2.8% in the third quarter. Lafayette Investments Inc. now owns 955 shares of the restaurant operator's stock valued at $412,000 after purchasing an additional 26 shares in the last quarter. Ritholtz Wealth Management increased its stake in Domino's Pizza by 1.1% in the third quarter. Ritholtz Wealth Management now owns 2,382 shares of the restaurant operator's stock valued at $1,028,000 after purchasing an additional 27 shares during the last quarter. Parallel Advisors LLC raised its holdings in Domino's Pizza by 2.9% during the third quarter. Parallel Advisors LLC now owns 965 shares of the restaurant operator's stock worth $417,000 after purchasing an additional 27 shares in the last quarter. Finally, Bessemer Group Inc. raised its holdings in Domino's Pizza by 1.2% during the third quarter. Bessemer Group Inc. now owns 2,317 shares of the restaurant operator's stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. 94.63% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Domino's Pizza

In related news, EVP Kelly E. Garcia sold 4,870 shares of the firm's stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $434.06, for a total transaction of $2,113,872.20. Following the transaction, the executive vice president owned 6,744 shares of the company's stock, valued at $2,927,300.64. This trade represents a 41.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 0.83% of the company's stock.

Trending Headlines about Domino's Pizza

Here are the key news stories impacting Domino's Pizza this week:

• Positive Sentiment: Analyst/value write-up says DPZ remains undervalued with a target up to $477 (roughly 20% upside), supporting a buy/long thesis for value investors. Domino's Pizza Stock Still Looks Cheap
• Positive Sentiment: Options-focused piece recommends bullish option structures (short OTM puts and buying ITM calls funded by OTM puts) as ways to play the perceived undervaluation — increases demand from derivative traders and can support the equity. Options Plays for DPZ
• Positive Sentiment: Momentum/long-term growth stories highlight DPZ as a top momentum stock and emphasize durable demand and execution, which can attract growth/momentum flows. Why Domino's is a Top Momentum Stock
• Positive Sentiment: Dividend/buy thesis: a buy piece cites Berkshire-related interest and frames DPZ as a dividend-focused, stable cash generator, which may draw income-oriented investors. Berkshire-Backed Dividend Dynamo
• Positive Sentiment: Fundamental support: coverage notes strong Q4 growth and a higher dividend, prompting fresh valuation takes and reinforcing the buy case. Valuation After Strong Q4
• Positive Sentiment: Operational tailwinds: Zacks highlights same-store sales strength, store economics and unit expansion as drivers of retail/system growth — positive for revenue and margin outlook. Same-Store Sales Strength
• Positive Sentiment: Institutional interest: coverage notes increased institutional focus tied to Nasdaq index inclusion, which can support demand and liquidity for the shares. Institutional Focus in Nasdaq Index
• Neutral Sentiment: Analyst insight roundup: a Globe and Mail piece summarizes varied analyst takes on consumer cyclicals including DPZ — helpful context but not a single new catalyst. Analysts Offer Insights
• Neutral Sentiment: Mixed analyst views: coverage notes diverging analyst perspectives on DPZ’s investment story — increases debate over valuation/timing and can add short-term volatility. Diverging Analyst Views
• Negative Sentiment: Bear case / earnings risk: Zacks research flagged weaker earnings expectations for the near term, a downside catalyst that can cap multiple expansion and pressure the stock if results disappoint. Zacks Predicts Weaker Earnings

Domino's Pizza Trading Up 1.4%

Shares of DPZ opened at $401.63 on Friday. The company's 50 day simple moving average is $400.26 and its 200-day simple moving average is $416.30. The firm has a market cap of $13.51 billion, a PE ratio of 22.86, a price-to-earnings-growth ratio of 1.73 and a beta of 1.16. Domino's Pizza Inc has a 12-month low of $370.70 and a 12-month high of $499.08.

Domino's Pizza (NASDAQ:DPZ - Get Free Report) last released its quarterly earnings results on Monday, February 23rd. The restaurant operator reported $5.35 EPS for the quarter, missing the consensus estimate of $5.38 by ($0.03). The business had revenue of $1.54 billion during the quarter. Domino's Pizza had a net margin of 12.18% and a negative return on equity of 15.28%. Domino's Pizza's revenue was up 6.4% compared to the same quarter last year. During the same period last year, the business posted $4.89 EPS. As a group, equities research analysts forecast that Domino's Pizza Inc will post 16.74 EPS for the current fiscal year.

Domino's Pizza Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 30th. Stockholders of record on Friday, March 13th will be issued a $1.99 dividend. The ex-dividend date of this dividend is Friday, March 13th. This is a positive change from Domino's Pizza's previous quarterly dividend of $1.74. This represents a $7.96 dividend on an annualized basis and a dividend yield of 2.0%. Domino's Pizza's dividend payout ratio is currently 45.30%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on DPZ. Stifel Nicolaus reduced their price objective on shares of Domino's Pizza from $510.00 to $485.00 and set a "buy" rating for the company in a research report on Wednesday, January 7th. UBS Group set a $500.00 price target on shares of Domino's Pizza and gave the stock a "buy" rating in a research note on Friday, February 13th. Evercore reissued an "outperform" rating and issued a $510.00 price target on shares of Domino's Pizza in a research report on Tuesday, February 24th. Weiss Ratings restated a "hold (c)" rating on shares of Domino's Pizza in a research note on Monday, December 29th. Finally, Benchmark reaffirmed a "buy" rating on shares of Domino's Pizza in a report on Monday, February 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $475.71.

About Domino's Pizza

Domino's Pizza, Inc NASDAQ: DPZ is a global pizza delivery and carryout chain founded in 1960 and headquartered in Ann Arbor, Michigan. The company specializes in a broad range of hand‐crafted pizzas, including hand-tossed, thin crust and specialty offerings, alongside side items such as chicken wings, sandwiches, pasta, desserts and beverages. Domino's has built its brand on convenience and speed, leveraging proprietary ordering platforms and its Domino's Tracker system to provide real-time status updates from order placement through delivery.

Operating predominantly under a franchise model, Domino's has more than 17,000 stores worldwide, with approximately 95% of outlets owned and operated by independent franchisees.

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