Warren Buffett's Berkshire dumps entire stake in Domino's
It was supposed to be a long-term bet on pizza. For six straight quarters, Berkshire Hathaway kept buying Domino's Pizza shares.
The position built into a near-10% stake in the iconic pizza chain, a level of institutional conviction that made investors sit up and pay attention.
Then, in a single quarter, it all went to zero.
The exit surprised markets. But to understand why it happened, you first need to understand who made the call and what changed at the top of Berkshire (BRK.A).
A new era, a very different Berkshire portfolio
Warren Buffett officially stepped down as Berkshire's chief executive on Dec. 31, handing control of the conglomerate and its massive investment portfolio to Greg Abel. It marked the end of a six-decade run for one of the most celebrated investors in history.
Abel wasted no time putting his own stamp on the Berkshire portfolio. In just the first quarter of 2026, he sold out of 16 positions, which represented roughly a third of Berkshire's holdings, the Globe and Mail noted.
In addition to Domino's (DPZ), Berkshireexited positions in Amazon, Visa, Mastercard, UnitedHealth, and six other Japanese stocks.
Abel also trimmed its stake in Chevron by 35%.
Notably, Abel more than tripled Berkshire's position in Google's parent company, building what is now a roughly $23 billion stake in the search and cloud giant.
The message is hard to miss: Abel is hunting for deep fundamental value, and some of the names Buffett had loved no longer fit that lens.
Why Berkshire sold Domino's shares
The Domino's sale was the one that shocked analysts. Berkshire had added shares for six consecutive quarters, according to Simply Wall St, which signaled conviction. So the full exit raised immediate questions.
The answers appear to be rooted in Domino's recent struggles.
The pizza giant reported first-quarter 2026 results that fell well short of expectations.
- U.S. same-store sales rose just 0.9%, a step down from recent performance.
- International same-store salesfell 0.4%, a rare and uncomfortable miss for a brand that has built much of its growth story around global expansion.
Domino's CEO Russell Weiner pointed to several headwinds.
- Consumer sentiment hit levels not seen since Covid.
- Ongoing inflation kept squeezing household budgets, especially for lower-income customers.
- Rival pizza chains fought back with deep discounts and promotions that looked a lot like Domino's own playbook.
"Competition within the QSR Pizza space also increased in Q1 as the national pizza players offered deals comparable, if not identical, to the renowned value Domino's has made famous," Weiner explained.
The company did say it is growing faster than the broader pizza category and taking market share. But the numbers were still soft enough to shake institutional confidence.
What Abel's Domino's move says about Berkshire strategy
The Domino's exit fits a clear pattern in what Abel has done so far. He appears to be prioritizing businesses with valuations that leave meaningful room for returns, near-unbreakable moats, and near-term headwinds not clouding the long-term story.
Domino's, dealing with inflationary pressures, aggressive competition, and slowing same-store sales, may not have met enough of Abel's criteria.
Related: Pizza Hut shuts down 49 restaurants
Analysts tracking DPZ stock forecast adjusted earnings to expand from $17.57 per share in 2025 to $28.9 per share in 2030, indicating a compounded annual growth rate of 10.4%.
Down 46% from all-time highs, Domino's stock trades at a forward price-to-earnings multiple of 15.3x. If it maintains this multiple, the pizza stock could return 44% within the next four years. If we adjust for dividends, cumulative returns could be closer to 52%.
Out of the 23 analysts covering DPZ stock, 14 recommend "buy," eight recommend "hold," and one recommends "sell." The average Domino's stock price target is $422, above the current price of $302.
The broader portfolio shakeup also signals that Abel is not simply maintaining Buffett's legacy positions out of respect or inertia.
That matters for investors who own Berkshire partly because of its stake in certain companies. Those holdings are no longer guaranteed to remain long-term holds.
What losing Berkshire's backing means for Domino's investors
Domino's stock losing a major institutional backer is never welcome news. But the company's management team made clear it still believes in the long-term drivers.
Weiner pointed to 11 consecutive years of market share gains in the U.S. pizza market and said the underlying franchise economics remain strong.
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Franchisee profits have grown by nearly $80,000 per store over that stretch. The company also reaffirmed its goal of 175-plus net new U.S. stores in 2026.
However, Domino's largest international franchisee, Domino's Pizza Enterprises, is dealing with its own operational challenges, dragging on overseas numbers.
And the updated 2026 guidance now calls for low single-digit same-store sales growth in both the U.S. and internationally, a step down from earlier targets.
For investors, the key question is whether Q1 was a bump in the road or the beginning of a longer rough patch.
Berkshire's exit suggests at least one very smart operator decided not to wait around to find out.
Related: Domino's CEO issues blunt message on growing problem
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This story was originally published May 18, 2026 at 7:07 PM.