Warren Buffett Favorite Domino's Sees This as a Big Growth Driver, but Is the Stock a Buy?
While Warren Buffett's Berkshire Hathaway was unloading hundreds of millions of dollars worth of equities last year, one of the few stocks it was buying was Domino's Pizza (NASDAQ: DPZ). The largest pizza restaurant operator in the world, Domino's has a strong franchise and the type of global brand equity that Buffett likes to see in a consumer goods stock.However, when the pizza giant reported its Q1 results on Monday, it failed to deliver growth on same-store sales in its home market. Its overall U.S. comparable-store sales declined by 0.5%, while company-owned restaurants same-store sales dropped by 2.9%. Notably, fewer than 300 of Domino's more than 7,000 U.S. locations are company-owned. However, international same-store sales were strong, up 3.7%, and management did give investors a tasty morsel of news about something that could help fuel growth both later this year and beyond.Continue reading
While Warren Buffett's Berkshire Hathaway was unloading hundreds of millions of dollars worth of equities last year, one of the few stocks it was buying was Domino's Pizza (NASDAQ: DPZ). The largest pizza restaurant operator in the world, Domino's has a strong franchise and the type of global brand equity that Buffett likes to see in a consumer goods stock.
However, when the pizza giant reported its Q1 results on Monday, it failed to deliver growth on same-store sales in its home market. Its overall U.S. comparable-store sales declined by 0.5%, while company-owned restaurants same-store sales dropped by 2.9%. Notably, fewer than 300 of Domino's more than 7,000 U.S. locations are company-owned.
However, international same-store sales were strong, up 3.7%, and management did give investors a tasty morsel of news about something that could help fuel growth both later this year and beyond.
