Buffett Increases Stake in Domino's Pizza Amid Market Challenges

Written by Emily J. Thompson, Senior Investment Analyst

Source: Fool

Updated: Jan 26 2026

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Should l Buy DPZ?

Source: Fool

Domino's Pizza Inc shares fell 3.00% and hit a 52-week low amid broader market gains, with the Nasdaq-100 up 0.41% and S&P 500 up 0.37%.

Despite the stock's decline, Warren Buffett's Berkshire Hathaway recently increased its stake in Domino's by acquiring 1.3 million shares at $435 each, reflecting confidence in the company's financial performance, which includes a 3.4% year-over-year global revenue growth in Q1 and a 7.9% rise in operating income. This investment comes as the fast-food sector faces challenges from rising gas prices and inflation, impacting consumer spending.

The increase in Buffett's holdings signals strong investor interest in Domino's, particularly given its attractive dividend yield of 2.4% and commitment to shareholder returns. However, the company must navigate the competitive landscape and rising costs to maintain its growth trajectory.

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Analyst Views on DPZ

Wall Street analysts forecast DPZ stock price to rise

15 Analyst Rating

6 Buy

8 Hold

1 Sell

Moderate Buy

Current: 310.160

Low

370.00

Averages

464.83

High

556.00

Current: 310.160

Low

370.00

Averages

464.83

High

556.00

BofA

Sara Senatore

Buy

downgrade

$496 -> $445

2026-04-29

Reason

BofA

Sara Senatore

Price Target

$496 -> $445

AI Analysis

2026-04-29

downgrade

Buy

Reason

BofA analyst Sara Senatore lowered the firm's price target on Domino's Pizza to $445 from $496 and keeps a Buy rating on the shares. The firm lowered its Q2 EPS estimate on softer topline, and its FY26 EPS estimate declines as well on the lower Q2 guide and Q1 miss, the analyst tells investors in a research note. The firm added that it expects Domino's to trade in-line with the market until investors grow more confident in the achievability of the long-term growth algorithm, which thte firm still expects Domino's to sustain over the medium to long term.

Morgan Stanley

Equal Weight

maintain

$430 -> $395

2026-04-28

Reason

Morgan Stanley

Price Target

$430 -> $395

2026-04-28

maintain

Equal Weight

Reason

Morgan Stanley lowered the firm's price target on Domino's Pizza to $395 from $430 and keeps an Equal Weight rating on the shares. In a tougher category with fierce competition, Domino's has long been the relative leader, but "things seemed to take yet another step down" in Q1, the analyst tells investors. Valuation is "cheap, but not a catalyst alone," says the analyst, who adds that it is not clear that the company's leadership position is "incrementally helpful, or will drive upward estimate revisions anytime soon."

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About DPZ

Domino’s Pizza, Inc. is a pizza company with a significant business in both delivery and carryout. The Company operates through three segments: U.S. stores, international franchise, and supply chain. The U.S. stores segment is comprised primarily of its franchise operations, which consists of franchised stores located in the United States. The segment also operates a network of United States Company-owned stores. The international franchise segment primarily includes operations related to the Company’s franchising business in foreign markets. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Company’s supply chain center operations in the United States and Canada. It is primarily a franchisor, with approximately 99% of its global stores owned and operated by its independent franchisees. In its international markets, the Company generally grants geographical rights to the Domino’s Pizza brand to master franchisees.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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