Domino’s Pizza Inc (NYSE: DPZ) opened in the red this morning after reporting disappointing revenue for its fiscal Q1, as same-store sales unexpectedly declined by 0.5% in the US.
However, the pullback may have created an opportunity to load up on DPZ, especially if you want to follow the legendary investor, Warren Buffett, in his footsteps.
Adverse weather events and macroeconomic uncertainty were broadly expected to weigh on Domino’s first-quarter financial results – that was public knowledge.
Still, the “Oracle of Omaha” continued to load up on Domino’s stock in recent months, indicating it remains a strong pick for the long term.
So, a few near-term challenges should perhaps not matter much for investors in 2025.
What Buffett’s stake tells us about Domino’s stock
Domino’s stock has returned more than 375% over the past ten years, but the chairman and chief executive of Berkshire Hathaway remains a buyer of DPZ, indicating the next ten years would perhaps not be any different.
Investors should note that Buffett is widely recognized for acquiring premium-quality businesses at a discount.
His decision to remain invested in Domino’s stock, despite near-term challenges, suggests that the influential investor continues to see inherent “value” in the world’s largest pizza chain.
Plus, it’s not like Domino’s earnings release this morning was all bad either.
While the firm’s management acknowledged macro uncertainty in its press release today, chief executive Russell Weiner confirmed that DPZ continues to gain market share not just in the US but internationally as well.
This trumps a slight miss in revenue that Domino’s reported for its first quarter on Monday.
What sets DPZ apart from other global pizza chains
Warren Buffett remains invested in Domino’s stock because its commitment to innovation really sets it apart from the competition in 2025.
For example, the pizza chain has implemented what it calls the “AnyWare” technology.
For customers, what it means is a unique ability to place orders via not-so-traditional digital channels like social media, smart speakers, and even text messages.
Layer that on with Domino’s, another offering called “Pinpoint Delivery” – and you have a fast-food chain that offers customer experience like no other.
Pinpoint delivery enables customers to receive their pizza in all sorts of non-conventional locations, like on the beachside, at a park, or any other. But wait, there’s more!
More recently, Domino’s has been tapping into artificial intelligence to predict online orders and prepare them for customers in advance, even before they have completed their purchase.
Additionally, the food giant is using AI for quality assurance as well. Together, all of it is leading to shorter delivery times and happier customers.
Is it worth buying Domino’s shares today?
Finally, Domino’s exceptional commitment to expanding internationally is what makes DPZ shares worth owning despite the post-earnings decline.
Domino’s has a “Hungry for More” strategy in place for a couple of years now that aims at opening well over 1,000 new locations annually through the end of 2028.
The firm’s “Hungry for More” strategy also eyes yearly sales growth of 7%. As part of it, DPZ is teaming up with DoorDash this year, after working with Uber Eats since 2023.
Investors should also note that despite a slight miss on the top line, Domino’s came in handily above estimates for per-share earnings in its fiscal Q1.
That’s part of the reason why Wall Street continues to agree with Warren Buffett on the food stock, given the consensus rating on the pizza chain currently sits at “overweight”.
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