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DPZ

1 Reason the Final Stock Warren Buffett Bought Is the Ultimate Millionaire-Maker

May 09, 2026 — 03:25 am EDT

Written by

Selena Maranjian for

The Motley Fool->

Key Points

- Domino's is the world's leading pizza chain.

- It's a dividend payer, too, recently yielding 2.4% and increasing that payout over time.

- 10 stocks we like better than Domino's Pizza ›

If you know anything about superinvestor Warren Buffett, you're probably interested in what he's buying -- or selling. It's worth noting that he stepped down from his CEO post at Berkshire Hathaway only a few months ago. So he's likely not doing the investing of Berkshire's cash anymore, but he's still around and still being consulted by Berkshire top brass, so it's likely he still has a say in various investing matters.

One of the last stocks Berkshire Hathaway added to its massive portfolio was Domino's Pizza (NASDAQ: DPZ). In fact, Berkshire has bought shares over the last six reported quarters. A new position was established in the third quarter of 2024, when Berkshire bought 1.3 million shares at an average price of $435 per share. The last purchase, in the fourth quarter of 2025, was 368,055 shares, at an average price of $417. This activity makes some sense: If Domino's was deemed a good buy at $435, it should be an even more compelling buy at $417. After all that activity, Berkshire recently owned 3.35 million shares -- fully 9.9% of the company.

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Why invest in Domino's?

You may now be wondering whether you should invest in Domino's Pizza. Here are some reasons why you might:

- It's the world's largest pizza chain, with more than 22,300 locations in more than 90 markets. It rakes in more than $20 billion annually -- and that's pretty much all from franchisees, who own and operate 99% of Domino's stores.

- It's growing at a good clip. Its first-quarter results, reported in late April, featured year-over-year global revenue growth of 3.4%, with income from operations rising 7.9% on a currency-adjusted basis.

- The company's market value was recently $11 billion, and management has authorized the repurchase of $1 billion worth of stock.

- Management seems to know how to grow its business -- the stock has averaged annual gains of 21% over the past 15 years and 12% over the past decade.

- Domino's is a dividend-paying stock, too. Its recent dividend yield was 2.4%, about twice that of the S&P 500, and when you add in the effect of past stock buybacks, the total shareholder yield is around 5.5%. Domino's has more than doubled its dividend payout over the past five years. (Warren Buffett loves collecting dividends -- though his company has yet to pay them.)

- Finally, there's the stock's valuation. Its forward-looking price-to-earnings (P/E) ratio was recently 17, well below the five-year average of 26, suggesting that shares are considerably undervalued.

Image source: The Motley Fool.

The stock is not without risks, of course. For one thing, persistent inflation can eat into its profits and/or cause it to hike prices, turning off many consumers. Another risk is the increasing popularity of GLP-1 weight-loss drugs, which could result in fewer orders for pizza.

If you find yourself intrigued, give the company a closer look to see if it seems like a great buying opportunity for you. Over many years, Domino's might make you a millionaire.

Should you buy stock in Domino's Pizza right now?

Before you buy stock in Domino's Pizza, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Domino's Pizza wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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Selena Maranjian has positions in Berkshire Hathaway. The Motley Fool has positions