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One of the newest additions to Berkshire Hathaway’s mega portfolio is pizza delivery chain Domino’s Pizza (Nasdaq: DPZ), which Warren Buffett and his team added late last year.

It’s been a choppy year for Domino’s so far in 2025, but on Tuesday, Domino’s stock was riding about 4% higher after the company posted strong third quarter earnings that easily beat estimates.

• Revenue: $1.15B, up 6.3% year-over-year and better than forecasts of $1.14B.
• Global net sales: $4.7B, up 7% year-over-year.
• U.S. same store sales: Up 5.2%, topping estimates of 4.2% growth.
• Net income: $139 million, down 5.2%.
• Earnings: $4.08 per share, down 2.6% but better than estimates of $3.96 per share.

“In the U.S., we drove positive order counts behind our Best Deal Ever promotion and stuffed crust pizza product innovation for the third quarter,” Russell Weiner, Domino’s CEO, said. “This resulted in another quarter of strong growth in both our delivery and carryout businesses.”

Operating income rises 12%

Domino’s reported strong sales both domestically and internationally, with U.S. sales rising 7% to $2.32 billion and international sales increasing 5.7% to $2.38 billion.

Same-store sales in the U.S. beat expectations, rising 5.2%, while international same-store sales rose 1.7%.

The increase was mainly due to more orders along with an increase in food basket pricing to its franchises, which rose 3.3% compared to the third quarter of 2024.

Also, while net income and overall earnings were down in the quarter, the pizza chain posted strong operating income — or income made directly from the Domino’s stores themselves. It does not include things like taxes or non-operating income and expenses. It is a more accurate depiction of the company’s performance. In Q3, operating income rose 12% to $232 million, boosted in part by higher franchise royalties.

Slow start to Q4

On the earnings call, Domino’s executives said they expect 3% same-store sales growth for the full fiscal year and 8% operating income growth.

Comparable store sales could be impacted in Q4 by macro economic pressures and a slow down in sales across the restaurant industry. However, the company still expects to outperform.

“But as far as we’re concerned, we are expecting to continue to gain share against the QSR (quick service restaurant) pizza industry. We’ve done so really well so far this year. And we expect to continue to do that in Q4,” CFO Sandeep Reddy said on the call, citing the success of the Best Deal Ever pizza discount promotion.

Domino’s got price target upgrades from Jefferies, Bank of America, and Goldman Sachs. However, RBC and TD Cowen lowered their targets due to the potentially sluggish Q4.

The consensus among analysts says it’s a buy or hold, with a $517 price target, suggesting 23% growth. Domino’s has a reasonable P/E ratio of 25 and, as market leader that has been gaining market share in a difficult year, it should continue be able to navigate rocky patches better than its competitors.

If it’s on Warren Buffett’s radar, it might be one to consider.

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