Warren Buffett Recently Invested in a Pizza Stock: 3 Reasons the Strategy Could Work for You
Warren Buffett made headlines in early 2025, when he announced that Berkshire Hathaway had closed its entire position in two S&P 500 index funds. The Oracle of Omaha had done it again, exiting his position just a few months before the so-called 'Liberation Day crash' in early April 2025. But that wasn't the only move Buffett made.
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Before selling its position in the S&P 500 funds, Berkshire purchased more than 1 million shares of Domino's Pizza stock, valued at nearly $550 million. Given Buffett's incredible track record, it's worth asking whether the same investment could make sense for your own portfolio.
It's never a good idea to buy an asset just because someone you respect did it first. But you might want to follow the same idea once you fully understand it. So by exploring why Buffett bought Domino's stock, you can decide whether to do the same.
Here are three reasons the strategy could work for you.
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First, Domino's uses technology better than its peers. This helps it operate more efficiently while providing extra value to its customers. For example, the chain is leveraging AI to anticipate online orders and prepare pizzas before customers purchase them. This reduces delivery times, improving the customer experience and driving more loyalty.
Domino's is also:
Experimenting with technology that lets customers place orders through text messages, smart speakers and even social media
Offering PinPoint Delivery so customers can receive orders at parks, beaches and just about anywhere else they want
Using AI to inspect pizzas virtually, improving its quality and cutting down on costly errors
Buffett also probably likes how Domino's is expanding its business: The company has plans to open 1,100 new stores in the next five years. It expects its sales to grow by 7% annually and its operating income to grow at 8% per year. This kind of expanding presence bodes well for the company's future profitability.
Another major trend to watch is Domino's market share in the quick-service pizza industry. In 2024, the company took another percent of the total market from competitors like Papa John's and Pizza Hut.
This means Domino's isn't just growing in an absolute sense; it's taking over more of its sector. So if you believe the quick-service pizza industry is poised for continued growth, Domino's could be the best way to bet on that, assuming the trend remains intact.
Wall Street agrees that Domino's earnings should increase by about 8% annually for the next few years. However, like all stocks, this one has risks, and you should understand them before investing.
For example, Domino's could be disrupted by a new entrant to the quick-service pizza industry and see a decline in its market share. Or the brand could fall out of favor with consumers, as other restaurants have in the past.
You should also know that Buffett and Berkshire take a long-term view on investing. So if you're going to follow them on Domino's, don't expect instant results.
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This article originally appeared on GOBankingRates.com: Warren Buffett Recently Invested in a Pizza Stock: 3 Reasons the Strategy Could Work for You
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Yahoo
21 minutes ago
- Yahoo
Trading Day: Trump-Musk feud slams stocks
By Jamie McGeever ORLANDO, Florida (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist There was plenty of meaty news for investors to get their teeth into on Thursday - U.S. President Donald Trump and Chinese Premier Xi Jinping's long-awaited phone call, a rate cut and guidance from the European Central Bank, and more soft U.S. labor market data. But the biggest market-mover of all? The public 'bromance' break up between Trump and Tesla CEO Elon Musk. In my column today I look at Wall Street's remarkable recovery from the post-'Liberation Day' depths of despair. The headwinds haven't gone away, but the 'hopium' rally could still have room to run. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. Trump threatens Musk's government deals as feud explodesover tax-cut bill 2. 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The cynical view would be that it yielded nothing concrete other than an agreement to keep talking, suggesting China is standing firm and Trump may be forced into another major climbdown. The more optimistic take, which investors initially adopted, is that the talks were constructive and cordial, evidenced by the tone of Trump's social media post and the fact that the two invited each other to visit. But that's pretty thin gruel, and it wasn't enough to support Wall Street's initial gains. After hitting a record high for a second day, the MSCI All Country index ended the session flat. Investor sentiment was soured by the latest weekly jobless claims figures, the second warning from the labor market in 24 hours after Wednesday's ADP private sector employment report. If these trends are reflected in May's nonfarm payrolls on Friday, markets could be in for a rocky ride. Some of the U.S. economic gloom was offset by the U.S. trade deficit narrowing in April at the fastest pace ever, thanks to a collapse in imports as the front-running of purchasing goods from overseas ahead of tariffs ebbed. This bodes well for second quarter GDP growth, and the Atlanta Fed's GDPNow model estimate for second quarter growth was revised up a touch to an annualized 3.8%. Like the first quarter GDP contraction, however, the expected rebound in Q2 is completely driven by pre-tariff distortions in the trade data. Meanwhile, the European Central Bank cut interest rates for the eighth time since last June, by a quarter point to 2.00%. President Christine Lagarde signaled a pause in the easing cycle, telling reporters the bank is in a "good position" on monetary policy right now. But more cuts are likely to come, just a bit later this year than many economists had expected. Rates traders still see 50 bps of easing this year, with 25 bps cuts in September and December. Lastly, but by no means least, the 'bromance' between the world's most powerful man and its richest erupted into a rancorous public fight, as Trump threatened to cut off government contracts with companies owned by Musk. The 14% slump in Tesla shares dragged Wall Street into the red, casting a shadow over world markets going into the final trading day of the week. Wall Street's 'hopium' high not exhausted yet By any measure, the recent resilience of U.S. stocks is remarkable, with Wall Street powering through numerous headwinds to erase all its tariff-fueled losses and move into positive territory for the year. And although these headwinds haven't gone away, the rally may still have some juice left in it. Since the April 7 lows plumbed after U.S. President Donald Trump's 'Liberation Day' tariff debacle, the S&P 500 and Nasdaq are up 23% and 32%, respectively. 'Big Tech' has led the way, with the Roundhill 'Magnificent Seven' ETF gaining more than 35%. 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Meanwhile, May's survey showed fund managers holding the biggest underweight position in U.S. equities in two years. When sentiment and positioning are that stretched, it doesn't take much for prices to snap back in the opposite direction. If the latest American Association of Individual Investors (AAII) Sentiment Survey is any guide, the snap back in equities still has room to run. Pessimism over the short-term outlook for U.S. stocks increased to an "unusually high" 41.9% last week, above its historical average of 31.0% for the 26th time in 28 weeks. As HSBC's multi-asset strategy team noted this week, it is precisely because these sentiment and positioning indicators are being kept "thoroughly in check" that market dips now are short-lived. It's also good to remember that even though Wall Street has erased its early losses and valuations are rising back towards their recent highs, U.S. stocks are still laggards this year. The S&P 500 is up only 1.5% in 2025 thus far, while the MSCI All Country World Index has jumped around 6%, hitting an all-time high on Wednesday. This suggests there may be room for U.S. outperformance on a relative basis in the coming weeks and months, though, of course, relative value metrics might still favor non-U.S. markets. This doesn't mean we should expect capital to start flooding back into the U.S. again. International institutional investors may continue to rethink their allocation to U.S. assets, creating a long-term risk to U.S. stocks. But for now, domestic U.S. investors are picking up the slack. What could move markets tomorrow? * India interest rate decision * Germany trade (April) * Germany industrial production (April) * Euro zone retail sales (April) * Euro zone GDP (Q1, revised) * U.S. non-farm payrolls, unemployment rate (May) * Canada employment (May) Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Jamie McGeever; Editing by Nia Williams) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
33 minutes ago
- Miami Herald
After Chapter 11 bankruptcy, iconic restaurant shuts 30 locations
The earliest memory I have of me and my family dining in a restaurant was at a cruise ship from Cyprus to Jerusalem. I was seven years old, and I remember it specifically because they were serving soup in huge cups. This was funny to me. They explained that it was because the ship is constantly swaying and it's more practical to avoid soup spilling. It was a bit less funny, but still very interesting. Don't miss the move: Subscribe to TheStreet's free daily newsletter Even though almost everything that is new is interesting when you are a kid, full of life and eager to explore, dining at a luxurious restaurant was really special. We were all dressed up, behaving nicely, and served all this delicious food we never tried before. Now I understand what made that soup in a cup dinner so precious was sharing it with the family. Then, all of a sudden, difficult times came, and we rarely traveled or ate at a restaurant. 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"We are committed to supporting our impacted team members throughout this process and are incredibly grateful to our valued customers for their loyalty and dedication to the Hooters brand." Related: Bankruptcy forces iconic ice cream chain to close 500 locations The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
44 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq slide as Tesla dives 14% on Trump-Musk escalation
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"Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!," Trump wrote on Truth Social. In a separate post, Trump said the easiest way money in the budget is to "terminate Elon's Governmental Subsidies and Contracts." Tesla stock quickly extended losses and was down more than 12% just after Trump posted the comments. Read more about the ongoing feud here. Mortgage rates fell for the first time in a month, following a sharp move lower in Treasury yields. At around 6.9%, relatively high rates have depressed mortgage and homebuying activity throughout the critical spring season. Yahoo Finance's Claire Boston reports: Read more here. 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President Trump posted on social media that he had a 'very good phone call' with Chinese leader Xi Jinping over trade. "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," Trump wrote on Truth Social on Thursday morning. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries," he added. Trump said each country's respective teams will be meeting shortly at a location to be determined. The president also said there "should no longer be any questions respecting the complexity of Rare Earth products." The issue of rare earth minerals, crucial components for manufacturing, has come to the forefront in recent weeks as China has made moves to restrict their exports to the US, in retaliation against US trade policy. This week, a group representing US auto suppliers called on Wednesday warned that the issue could quickly disrupt auto parts production Read more here. Tesla (TSLA) stock fell more than 5% on Thursday, extending declines from the previous session following an increasingly public policy blowout between President Trump and Tesla CEO Elon Musk "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Musk added, "If the massive deficit spending continues, there will only be money for interest payments and nothing else!" EV tax credits could also be at risk after a report from Bloomberg suggests that Musk's new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful. Amazon (AMZN) stock gained as much as 2% on Thursday morning after Chinese state media said President Trump and Chinese leader Xi Jinping spoke on Thursday, at the request of the US president. Amazon, which sells many products sourced in China, rose following the announcement. US stocks opened higher on Thursday after Chinese media reported a conversation between President Trump and Chinese leader Xi. This raised investor hopes that the two countries could be coming closer to a lasting trade agreement. The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) rose slightly. The tech-heavy Nasdaq Composite (^IXIC) also gained 0.2%. Chinese state media said Trump and Chinese leader Xi Jinping spoke on Thursday at the US president's request. Tesla (TSLA) stock slumped more than 3% in premarket trading as CEO Elon Musk continued his public feud with policymakers over President Trump's tax and spending bill. "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Some have speculated that these outbursts may in part have to do with Musk's concern that Congress will do away with the federal EV tax credit, which helped the company by making its cars more affordable to consumers. Though Musk has also downplayed Tesla's reliance on the tax credit in the past. Yahoo Finance's Pras Subramanian reports: Read more here. Weekly claims for unemployment benefits hit their highest level in more than seven months during the final full week of May while the number of Americans filing for unemployment insurance on an ongoing basis continued to hover near its highest level in nearly four years as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 247,000 initial jobless claims were filed in the week ending May 231, up from 239,000 the week prior and above economists' expectations for 235,000. Meanwhile, 1.904 million continuing claims were filed, down slightly from 1.907 million the week prior and near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Silver surged to its highest level since February 2012, rising about 4% to above $36 an ounce on Thursday morning. Gold also rose 0.5% as demand for the metals remained strong. Bloomberg reports: Read more here. As millions of people flooded into the stock market over the past few years, understanding of the things that move markets seems to have made noticeable progress. Not, however, for bonds, notes Yahoo Finance's Hamza Shaban: Read more here in today's Morning Brief. Earnings: Broadcom (AVGO), DocuSign (DOCU), Lululemon (LULU), Cracker Barrel (CBRL), Duluth Trading (DLTH), Land's End (LE), Petco (WOOF), Rubrik (RBRK), Victoria's Secret (VSCO) Economic data: Initial jobless claims (week ending May 31); Continuing claims (week ending May 24); Challenger job cuts (May); Nonfarm productivity (first quarter final); Unit labor costs (first quarter final) Here are some of the biggest stories you may have missed overnight and early this morning: Bonds are 'boring' — but they're critical to focus on right now US plans wider China tech curbs targeting subsidiaries 401(k) savings rate hit a record in first quarter: Fidelity US business optimism slumps in 'clear pivot' from Trump election Tesla: Musk may be changing his tune on EV tax credits Trump tariffs: China's rare-earth broadside hits its target Tide maker Procter & Gamble is slashing 7,000 jobs Amazon tests humanoid robots to replace delivery workers: Report Procter & Gamble (PG) said Thursday it will cut 7,000 jobs — or around 6% of its global workforce — as it grapples with rising tariff-related costs and shifts in demand from penny-watching shoppers. The consumer products giant's two-year restructuring plan also calls for the dropping of certain product categories and brands, Reuters reported. Shares in P&G were little changed in premarket trading as investors assessed the news from the world's largest consumer goods company. Yahoo Finance's Brian Sozzi reports: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock fell over 1% in premarket trading on Thursday following CEO Elon Musk's latest attack on President Trump's tax bill. Musk said: "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X. PVH Corp (PVH), the owner of designer brand Calvin Klein, stock dropped 8% before the bell after cutting its profit outlook for the year, citing weakness in the US, China and tariffs. Zac Coughlin, Chief Financial Officer, said, 'We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business." Robinhood (HOOD) stock rose 1% following Bank of America (BAC) saying the online brokerage is a "prime candidate" to enter the S&P 500 Index in the rebalancing set to be announced Friday. Broadcom (AVGO) stock rose 1.4% in premarket trading ahead of second-quarter earnings report, due for release later today. Well, despite the recent rise of the 'TACO" trade, it appears President Trump does not always chicken out. After days of Tesla (TSLA) CEO Elon Musk bashing Trump's tax bill, the President responded in scathing fashion on Thursday. Trump wrote in a Truth Social post, the easiest way money in the budget is to "terminate Elon's Governmental Subsidies and Contracts." He added in a separate post,' "Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!' The spout resulted in Tesla stock falling more than 14% amid its worts single day market cap loss in history. With the stock trading at about 284 per share, roughly in line with where shares ended the trading session the day after the election on Nov. 6, the Trump bump has essentially been erased from one of the most popular Trump trades. Now with the stock essentially back at the same price it was seven months ago, investors are faced with evaluating the difference between a company's CEO buddying up with the president and that same CEO becoming the president's direct adversary. President Trump took to his social media platform, Truth Social, on Thursday afternoon to continue an ongoing feud with Tesla (TSLA) CEO Elon Musk, who recently left his post with the Department of Government Efficiency (DOGE). "Elon was 'wearing thin,' I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!," Trump wrote on Truth Social. In a separate post, Trump said the easiest way money in the budget is to "terminate Elon's Governmental Subsidies and Contracts." Tesla stock quickly extended losses and was down more than 12% just after Trump posted the comments. Read more about the ongoing feud here. Mortgage rates fell for the first time in a month, following a sharp move lower in Treasury yields. At around 6.9%, relatively high rates have depressed mortgage and homebuying activity throughout the critical spring season. Yahoo Finance's Claire Boston reports: Read more here. Palantir (PLTR) shares fell as much as 5% in afternoon trading as Semafor reported Republican privacy advocates in Congress are criticizing the Trump administration's work with the defense technology company. Multiple Congress members expressed privacy concerns regarding Palantir's collection of a "massive pool of government data on Americans." Read more here. Yahoo Finance's Pras Subramanian reports: Read more here. Stablecoin issuer Circle Internet Group (CRCL) shares are soaring just after the company began trading at $69. The stock quickly hit $92 after several trading halts. Shares are now up more than 200% from the companies IPO price of $31 per share. Read more here. The S&P 500 (^GSPC) came close to touching 6,000 on Thursday, its highest level since February. The broad-based index touched a session high of 5,999.70 after President Trump said he had a "very good phone call" with his Chinese counterpart, Xi Jinping, about trade. Stocks have roared back roughly 20%, or more than 1,000 points, from their April lows after President Trump's "Liberation Day" tariff policy reveal. The president has since rolled back the broad-based reciprocal tariff plan he unveiled on April 2, announcing a 90-day pause on many countries, a framework deal with the UK, and a temporary trade truce with China. Yahoo Finance's Jen Schonberger reports: Read more here. Trump Media and Technology (DJT) took a key step toward launching a publicly traded crypto investment product Thursday morning. The newly formed Truth Social Bitcoin ETF business trust filed its S-1 with the US Securities and Exchange Commission to register the new exchange-traded fund licensing Trump Media's social media brand. The ETF will trade on the NYSE Arca. Thursday's filing is a significant step for Trump Media's move into the cryptocurrency space. Shares of DJT were down just over 1% late Thursday morning. Read the full story here. President Trump posted on social media that he had a 'very good phone call' with Chinese leader Xi Jinping over trade. "I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal," Trump wrote on Truth Social on Thursday morning. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries," he added. Trump said each country's respective teams will be meeting shortly at a location to be determined. The president also said there "should no longer be any questions respecting the complexity of Rare Earth products." The issue of rare earth minerals, crucial components for manufacturing, has come to the forefront in recent weeks as China has made moves to restrict their exports to the US, in retaliation against US trade policy. This week, a group representing US auto suppliers called on Wednesday warned that the issue could quickly disrupt auto parts production Read more here. Tesla (TSLA) stock fell more than 5% on Thursday, extending declines from the previous session following an increasingly public policy blowout between President Trump and Tesla CEO Elon Musk "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Musk added, "If the massive deficit spending continues, there will only be money for interest payments and nothing else!" EV tax credits could also be at risk after a report from Bloomberg suggests that Musk's new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful. Amazon (AMZN) stock gained as much as 2% on Thursday morning after Chinese state media said President Trump and Chinese leader Xi Jinping spoke on Thursday, at the request of the US president. Amazon, which sells many products sourced in China, rose following the announcement. US stocks opened higher on Thursday after Chinese media reported a conversation between President Trump and Chinese leader Xi. This raised investor hopes that the two countries could be coming closer to a lasting trade agreement. The Dow Jones Industrial Average (^DJI) was little changed, while the S&P 500 (^GSPC) rose slightly. The tech-heavy Nasdaq Composite (^IXIC) also gained 0.2%. Chinese state media said Trump and Chinese leader Xi Jinping spoke on Thursday at the US president's request. Tesla (TSLA) stock slumped more than 3% in premarket trading as CEO Elon Musk continued his public feud with policymakers over President Trump's tax and spending bill. "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X on Wednesday. Some have speculated that these outbursts may in part have to do with Musk's concern that Congress will do away with the federal EV tax credit, which helped the company by making its cars more affordable to consumers. Though Musk has also downplayed Tesla's reliance on the tax credit in the past. Yahoo Finance's Pras Subramanian reports: Read more here. Weekly claims for unemployment benefits hit their highest level in more than seven months during the final full week of May while the number of Americans filing for unemployment insurance on an ongoing basis continued to hover near its highest level in nearly four years as the US labor market continues to show signs of slowing. Data from the Department of Labor released Thursday morning showed 247,000 initial jobless claims were filed in the week ending May 231, up from 239,000 the week prior and above economists' expectations for 235,000. Meanwhile, 1.904 million continuing claims were filed, down slightly from 1.907 million the week prior and near the highest level seen since November 2021. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Silver surged to its highest level since February 2012, rising about 4% to above $36 an ounce on Thursday morning. Gold also rose 0.5% as demand for the metals remained strong. Bloomberg reports: Read more here. As millions of people flooded into the stock market over the past few years, understanding of the things that move markets seems to have made noticeable progress. Not, however, for bonds, notes Yahoo Finance's Hamza Shaban: Read more here in today's Morning Brief. Earnings: Broadcom (AVGO), DocuSign (DOCU), Lululemon (LULU), Cracker Barrel (CBRL), Duluth Trading (DLTH), Land's End (LE), Petco (WOOF), Rubrik (RBRK), Victoria's Secret (VSCO) Economic data: Initial jobless claims (week ending May 31); Continuing claims (week ending May 24); Challenger job cuts (May); Nonfarm productivity (first quarter final); Unit labor costs (first quarter final) Here are some of the biggest stories you may have missed overnight and early this morning: Bonds are 'boring' — but they're critical to focus on right now US plans wider China tech curbs targeting subsidiaries 401(k) savings rate hit a record in first quarter: Fidelity US business optimism slumps in 'clear pivot' from Trump election Tesla: Musk may be changing his tune on EV tax credits Trump tariffs: China's rare-earth broadside hits its target Tide maker Procter & Gamble is slashing 7,000 jobs Amazon tests humanoid robots to replace delivery workers: Report Procter & Gamble (PG) said Thursday it will cut 7,000 jobs — or around 6% of its global workforce — as it grapples with rising tariff-related costs and shifts in demand from penny-watching shoppers. The consumer products giant's two-year restructuring plan also calls for the dropping of certain product categories and brands, Reuters reported. Shares in P&G were little changed in premarket trading as investors assessed the news from the world's largest consumer goods company. Yahoo Finance's Brian Sozzi reports: Read more here. Here are some top stocks trending on Yahoo Finance in premarket trading: Tesla (TSLA) stock fell over 1% in premarket trading on Thursday following CEO Elon Musk's latest attack on President Trump's tax bill. Musk said: "Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL," Musk posted on X. PVH Corp (PVH), the owner of designer brand Calvin Klein, stock dropped 8% before the bell after cutting its profit outlook for the year, citing weakness in the US, China and tariffs. Zac Coughlin, Chief Financial Officer, said, 'We are reaffirming our revenue guidance for the year but are decreasing our outlook for profitability and earnings per share to reflect that backdrop and the current performance of our business." Robinhood (HOOD) stock rose 1% following Bank of America (BAC) saying the online brokerage is a "prime candidate" to enter the S&P 500 Index in the rebalancing set to be announced Friday. Broadcom (AVGO) stock rose 1.4% in premarket trading ahead of second-quarter earnings report, due for release later today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
