Just caught something interesting about Domino's that's worth a closer look. Berkshire Hathaway has been quietly building a massive position in DPZ—we're talking nearly 3.35 million shares now, which gives them just under 10% of the company. That's a $1.4 billion bet, and the fact that they kept buying through a 20% drop from Q3 2024 to late February tells you something about their conviction.

What's wild is how this plays out in the actual pizza market. Domino's generated $9.95 billion in U.S. retail sales last year while Pizza Hut (Yum! Brands' struggling subsidiary) managed only $5.11 billion. DPZ grew 4.7% while Pizza Hut contracted 8%. Meanwhile, Yum is closing 250 Pizza Hut locations in 2026 and Domino's is opening 175+ new stores. That's not just winning—that's systematically taking market share from the only competitor that matters.

The earnings backdrop supports the bullish case too. Q4 revenue hit $1.54 billion, beating estimates, and adjusted EPS came in at $5.35. Management guided for 6% global sales growth in 2026, showing they're accelerating from last year's 5.4% pace. Nothing spectacular, but solid execution from a market leader.

Here's where it gets interesting for value hunters: the stock trades at a 21.5x forward P/E, which is 16% below its three-year average of 25.7x. So you're getting a quality compounder at a discount to history. And they just bumped the quarterly dividend 15% to $1.99, translating to roughly 2% yield—meaningfully higher than the S&P 500's 1.1%. They've been growing that dividend at 18% annually over five years, which is genuinely rare among large-cap U.S. stocks.

Berkshire's $1.4B position essentially signals they see real runway here. Market share leader with a weakening competitor, reasonable valuation, and consistent dividend growth. Whether you're looking at this from a growth angle or income angle, there's something to unpack.