Restaurant company Domino’s Pizza (NYSE:DPZ) has become a new favorite of Warren Buffett’s Berkshire Hathaway (NYSE:BRK) (NYSE:BRK). The company looks to get shares back to positive year-to-date with its third-quarter financial results coming Tuesday before market open.
Earnings Estimates: Analysts expect Domino’s to report third-quarter revenue of $1.14 billion, up from $1.08 billion in last year’s third quarter, according to data from Benzinga Pro.
The company has missed analyst revenue estimates in eight of the last 10 quarters.
Analysts expect Domino’s to report third-quarter earnings per share of $3.98, down from $4.19 in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in eight of the last 10 quarters.
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What Analysts Are Saying: Analysts have been lowering their price targets on Domino’s in recent weeks ahead of the quarterly results.
Here are some of the recent analyst ratings on Domino’s and their price targets:
- Jefferies: Maintained Hold rating, lowered price target from $490 to $455
- Piper Sandler: Maintained Neutral rating, lowered price target from $477 to $443
- Barclays: Maintained Underweight rating, lowered price target from $425 to $405
- Wells Fargo: Maintained Equal Weight rating, lowered price target from $490 to $450
- Morgan Stanley: Maintained Overweight rating, raised price target from $520 to $535
Key Items to Watch: Berkshire Hathaway began buying shares of Domino’s Pizza in the third quarter of 2024 and has grown its stake in recent quarters.
In the second quarter, Berkshire grew its position by 1%, adding to the 10% increase in the first quarter, marking two increases so far in 2025.
As of the end of the second quarter, Berkshire Hathaway owns 2,633,868 shares of Domino’s, representing around 7.8% of the company. At a value of around $1.1 billion, the stake represents approximately 0.4% of Berkshire Hathaway’s investing portfolio, as reported by CNBC.
In November, a new 13F filing from Berkshire Hathaway will reveal whether the conglomerate bought more shares of the pizza company, sold shares, or maintained its stake.
Domino’s financial results have been mixed in recent quarters, with a strong history of beating earnings per share estimates, while missing revenue estimates. In the second quarter, this trend was reversed, with revenue beating estimates and earnings per share coming in slightly below.
The company reported a 4.3% year-over-year increase in revenue in the second quarter, with supply chain revenue and franchise royalties and fees highlighted as reasons for the growth.
Revenue gains came with global retail stores up 5.6% year-over-year for the company in the second quarter, with U.S. same-store sales up 3.4%. The company’s CEO Russell Weiner highlighted strong delivery and carryout growth for the U.S. region, helping to boost market share gains for the pizza category in the country.
International expansion and sales could be a topic of discussion on Tuesday. In the second quarter, the company reported international same-store sales growth of 2.4% year-over-year. The company added 178 net new locations in the second quarter, with 148 new international locations.
Rival pizza chain Papa John’s International (NASDAQ:PZZA) recently announced plans to have 650 locations in India by 2035, a market the company exited in 2017.
Domino’s is one of the biggest pizza companies in the country, with around 2,200 locations, while Pizza Hut has around 950 locations. This re-entry by Papa John’s could quickly eat into Domino’s market share in the region.
Company rebrands and logo changes have a mixed history of success, with a recent launch by Cracker Barrel among the most talked-about items in the restaurant sector in 2025. Domino’s is hoping its makeover goes over better than that.
The company’s brand refresh is its first in 13 years and includes a focus on its red and blue colors, new employee uniforms, new pizza box designs and a new jingle from Grammy-award winner Shaboozey, as reported by CBS News.
Domino’s is hoping its brand refresh helps the company reach younger customers.
“Most companies rebrand themselves when they’re struggling, but after years of category-defying growth, this refresh is about continuing to push to be the best version of ourselves,” Domino’s Global Chief Marketing Officer Kate Trumbull said, as shared by CBS.
Domino’s has over 21,500 stores worldwide and has been a market share gainer in the restaurant and pizza sectors, thanks to an early focus on mobile ordering.
DPZ Price Action: Domino’s stock is up 0.7% to $409.17 on Monday versus a 52-week trading range of $397.12 to $500.55. Shares are down 5.9% year-to-date in 2025.
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