Buffett Reduces Bank of America Stake While Increasing Domino's Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: NASDAQ.COM
- Reduction in BofA Shares: Buffett sold approximately 464,781,994 shares of Bank of America, representing about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes.
- Increase in Domino's Holdings: During the same period, Buffett purchased nearly 3 million shares of Domino's Pizza over five consecutive quarters, accounting for 8.8% of its outstanding shares, reflecting strong confidence in the brand and its long-term growth potential.
- Interest Rate Sensitivity of BofA: Despite the reduction in stake, Bank of America's significant sensitivity to interest rate changes remains a key attraction for Buffett, especially during the recent rate-hiking cycle and potential future rate cuts.
- International Growth of Domino's: Domino's has achieved 31 consecutive years of same-store sales growth internationally, indicating strong brand value and product acceptance globally, which further bolstered Buffett's investment confidence.
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Analyst Views on DPZ
Wall Street analysts forecast DPZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DPZ is 488.46 USD with a low forecast of 370.00 USD and a high forecast of 545.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
12 Buy
9 Hold
1 Sell
Moderate Buy
Current: 393.430
Low
370.00
Averages
488.46
High
545.00
Current: 393.430
Low
370.00
Averages
488.46
High
545.00
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.
Warren Buffett's Investment Moves Before Retirement
- Berkshire's Investment Shift: Buffett sold approximately 464,781,994 shares of Bank of America, about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes, impacting Berkshire's investment portfolio performance.
- View on Bank of America: Despite Buffett's waning interest in Bank of America, his understanding of its interest rate sensitivity made it a top investment for nearly a decade; however, the stock's premium to book value made his selling decision particularly significant.
- Domino's Pizza Accumulation: In the five quarters leading up to his retirement, Buffett purchased nearly 3 million shares of Domino's Pizza, representing 8.8% of its outstanding shares, reflecting his confidence in the brand and its ongoing growth potential in international markets.
- Strategic Growth Initiatives: Domino's management has implemented the “Hungry for MORE” plan, leveraging technology and AI to enhance operational efficiency, demonstrating strong market adaptability and long-term growth potential, which further attracted Buffett's investment interest.
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Buffett Reduces Bank of America Stake While Increasing Domino's Holdings
- Reduction in BofA Shares: Buffett sold approximately 464,781,994 shares of Bank of America, representing about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes.
- Increase in Domino's Holdings: During the same period, Buffett purchased nearly 3 million shares of Domino's Pizza over five consecutive quarters, accounting for 8.8% of its outstanding shares, reflecting strong confidence in the brand and its long-term growth potential.
- Interest Rate Sensitivity of BofA: Despite the reduction in stake, Bank of America's significant sensitivity to interest rate changes remains a key attraction for Buffett, especially during the recent rate-hiking cycle and potential future rate cuts.
- International Growth of Domino's: Domino's has achieved 31 consecutive years of same-store sales growth internationally, indicating strong brand value and product acceptance globally, which further bolstered Buffett's investment confidence.
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Coca-Cola vs. Domino's Pizza: 2026 Showdown
- Coca-Cola's Steady Growth: In Q3 2025, Coca-Cola reported a 5% year-over-year sales increase, with comparable operating margins rising from 30.7% to 31.9%, demonstrating strong pricing power and efficient production, which bolstered market confidence.
- Dividend King Status: Coca-Cola has raised its dividend for 63 consecutive years, currently yielding 2.9%, attracting investors seeking stable income despite strong stock performance, further solidifying its leadership in the consumer goods sector.
- Domino's Sales Growth: Domino's reported a 6.3% year-over-year increase in global retail sales for Q3 2025, with comparable sales up 5.2%; although the market has not fully recognized this growth, its resilience in a high-inflation environment may set the stage for future gains.
- Market Competition Pressure: Despite Domino's lack of significant growth last year, its current P/E ratio of 24 is slightly higher than Coca-Cola's 23, reflecting market caution regarding its future potential, which may influence investor decisions.
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- Coca-Cola's Stable Growth: In Q3 2025, Coca-Cola reported a 5% year-over-year sales increase, with comparable operating margins rising from 30.7% to 31.9%, demonstrating its pricing power and cost management capabilities in a high-inflation environment, which boosts market confidence in its future performance.
- Domino's Sales Struggles: Despite reporting a 6.3% year-over-year increase in global retail sales and a 5.2% comparable sales growth in Q3 2025, the market's muted response indicates limited growth potential for the restaurant sector under inflationary pressures.
- Strong Dividend Performance: As a
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- Rebound in Fast-Casual Stocks: In 2025, fast-casual stocks like Wingstop, Chipotle, Cava, and Sweetgreen suffered losses ranging from 15% to 78%, but have shown double-digit rebounds in early 2026, indicating a restoration of market confidence in the sector.
- Shifts in Consumer Preferences: Data shows that the share of consumers opting for deli-prepared foods over restaurant meals has more than doubled since 2017, rising from 12% to 28%, highlighting increased competition for fast-casual dining amid economic pressures.
- Pricing Strategy Missteps: Analysts note that fast-casual companies have aggressively raised menu prices over the past year, leading to heightened consumer sensitivity, particularly as prices exceed $16, prompting consumers to reassess their value.
- Market Expectation Reset: As market expectations for fast-casual stocks adjust, investors are beginning to refocus on the fundamentals of these businesses, particularly the strong long-term performance of companies like Chipotle and Wingstop, which may attract renewed capital inflows.
See More
Warren Buffett's Investment Moves Before Retirement
- Berkshire's Investment Shift: Buffett sold approximately 464,781,994 shares of Bank of America, about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes, impacting Berkshire's investment portfolio performance.
- View on Bank of America: Despite Buffett's waning interest in Bank of America, his understanding of its interest rate sensitivity made it a top investment for nearly a decade; however, the stock's premium to book value made his selling decision particularly significant.
- Domino's Pizza Accumulation: In the five quarters leading up to his retirement, Buffett purchased nearly 3 million shares of Domino's Pizza, representing 8.8% of its outstanding shares, reflecting his confidence in the brand and its ongoing growth potential in international markets.
- Strategic Growth Initiatives: Domino's management has implemented the “Hungry for MORE” plan, leveraging technology and AI to enhance operational efficiency, demonstrating strong market adaptability and long-term growth potential, which further attracted Buffett's investment interest.
See More
Buffett Reduces Bank of America Stake While Increasing Domino's Holdings
- Reduction in BofA Shares: Buffett sold approximately 464,781,994 shares of Bank of America, representing about 45% of his stake, between July 2024 and September 2025, likely to lock in profits and respond to valuation changes.
- Increase in Domino's Holdings: During the same period, Buffett purchased nearly 3 million shares of Domino's Pizza over five consecutive quarters, accounting for 8.8% of its outstanding shares, reflecting strong confidence in the brand and its long-term growth potential.
- Interest Rate Sensitivity of BofA: Despite the reduction in stake, Bank of America's significant sensitivity to interest rate changes remains a key attraction for Buffett, especially during the recent rate-hiking cycle and potential future rate cuts.
- International Growth of Domino's: Domino's has achieved 31 consecutive years of same-store sales growth internationally, indicating strong brand value and product acceptance globally, which further bolstered Buffett's investment confidence.
See More
Analysis of IonQ's Quantum Computing Stock Volatility
- Stock Performance: IonQ's stock has surged 277.7% over the past five years, yet it currently trades at $39.98, down 7.54% from its daily high, indicating market concerns over its high valuation.
- Technological Advantages and Challenges: IonQ's trapped-ion qubits achieved a 99.99% fidelity in 2-qubit gates, although 68% of runtime is still spent on cooling, but its performance at higher temperatures may reduce computation time and enhance competitiveness.
- Competitive Landscape: IonQ faces fierce competition from companies like Rigetti Computing, which boasts a 99.6% fidelity in its 36-qubit system but operates at speeds 1,000 times faster than IonQ, highlighting the intensifying race between speed and accuracy.
- Financial Condition: With a market cap of $16.5 billion, IonQ surpasses its competitors, yet its annual revenue stands at only $79.8 million, coupled with a $1.5 billion net loss, resulting in a staggering 142 times trailing sales ratio, prompting investors to carefully assess risks.
See More
Coca-Cola vs. Domino's Pizza: 2026 Showdown
- Coca-Cola's Steady Growth: In Q3 2025, Coca-Cola reported a 5% year-over-year sales increase, with comparable operating margins rising from 30.7% to 31.9%, demonstrating strong pricing power and efficient production, which bolstered market confidence.
- Dividend King Status: Coca-Cola has raised its dividend for 63 consecutive years, currently yielding 2.9%, attracting investors seeking stable income despite strong stock performance, further solidifying its leadership in the consumer goods sector.
- Domino's Sales Growth: Domino's reported a 6.3% year-over-year increase in global retail sales for Q3 2025, with comparable sales up 5.2%; although the market has not fully recognized this growth, its resilience in a high-inflation environment may set the stage for future gains.
- Market Competition Pressure: Despite Domino's lack of significant growth last year, its current P/E ratio of 24 is slightly higher than Coca-Cola's 23, reflecting market caution regarding its future potential, which may influence investor decisions.
See More
Comparative Market Performance of Coca-Cola and Domino's
- Coca-Cola's Stable Growth: In Q3 2025, Coca-Cola reported a 5% year-over-year sales increase, with comparable operating margins rising from 30.7% to 31.9%, demonstrating its pricing power and cost management capabilities in a high-inflation environment, which boosts market confidence in its future performance.
- Domino's Sales Struggles: Despite reporting a 6.3% year-over-year increase in global retail sales and a 5.2% comparable sales growth in Q3 2025, the market's muted response indicates limited growth potential for the restaurant sector under inflationary pressures.
- Strong Dividend Performance: As a
See More
Analysis of the Rebound in Fast-Casual Stocks
- Rebound in Fast-Casual Stocks: In 2025, fast-casual stocks like Wingstop, Chipotle, Cava, and Sweetgreen suffered losses ranging from 15% to 78%, but have shown double-digit rebounds in early 2026, indicating a restoration of market confidence in the sector.
- Shifts in Consumer Preferences: Data shows that the share of consumers opting for deli-prepared foods over restaurant meals has more than doubled since 2017, rising from 12% to 28%, highlighting increased competition for fast-casual dining amid economic pressures.
- Pricing Strategy Missteps: Analysts note that fast-casual companies have aggressively raised menu prices over the past year, leading to heightened consumer sensitivity, particularly as prices exceed $16, prompting consumers to reassess their value.
- Market Expectation Reset: As market expectations for fast-casual stocks adjust, investors are beginning to refocus on the fundamentals of these businesses, particularly the strong long-term performance of companies like Chipotle and Wingstop, which may attract renewed capital inflows.
See More
