Warren Buffett is a new fan of Domino's Pizza. Berkshire Hathaway first started buying shares of the company in the third quarter of 2024, scooping up more in Q4, bringing the stake to nearly 2.4 million shares. Now, the pizza chain is reporting earnings on Monday before the open, so our very own Brooke DePalma is here with what investors can expect. Brooke, walk us through your anticipation.

Yeah, good morning. Well, certainly got a nod from the Oracle of Omaha this what this uh past quarter. Uh Domino's Pizza, that is, in Q3, Berkshire Hathaway bought in 1.28 million shares. And then in Q4, they added an additional 1.1 million shares, bringing that stake to 2.38 million. Now, that makes Berkshire Hathaway the fourth largest shareholder of Domino's Pizza ahead of this Monday Q4 as well as the full year print. Now, Wall Street expects that this fourth quarter will be a softer quarter here because of that bad weather. City analyst John Tower said that investors have already, or shares rather have already baked that in and they've sort of moved past that. Now, they're really focused on three key areas. That includes challenges around their international growth. We know that their largest global franchisee, Domino's Pizza Enterprises, shared plans to close more than 200 unprofitable locations with the majority in Japan. But on the upside, two long-term growth drivers that has Wall Street really excited here includes a partnership with DoorDash, the third-party delivery service. We know that in Q1, their exclusivity with Uber ends. We also know that third party tends to be a higher income audience. So, that is a boost to sales as well. An innovation here that also has the street really excited, guys. Innovation around stuffed crust pizza. That could come by the end of this year, and that's one sales driver that has Wall Street really excited as well.

Brooke, how's Domino's been able to navigate the inflation side of the picture?

Yeah, well, certainly, that's something that we've discussed with them. They have this sort of upside here because they're able to play as a value player. And they're able to sort of offset those costs. They don't they aren't really exposed to things that others are perhaps highly exposed to like those eggs, like ground beef, like sugar. And so, they've been able to navigate that, but also play in as a key value player within the space. And they've been able to prove up against others like Papa Johns who maybe aren't winning in that space or able to offer as competitive a value here.