Domino's Pizza Enterprises Ltd (ASX: DMP) shares have taken a pummeling this year. They are down around 50% since January, and closed at a 52-week low of $28.46 in Thursday's session.
Today, at the time of writing, Domino's shares have surged a welcome 4.15% to $29.64.
According to US Securities and Exchange Commission (SEC) filings, Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK) has bought up shares in the embattled pizza giant.
In terms of pizza sizes, there's no bigger slice than the 'Oracle of Omaha'. According to the filings, Buffett's firm owned 1.28 million shares as of 30 September.
Naturally, investors are wondering if The Buff sees something we don't. Known for his "buy when others are fearful" approach, his moves are often watched closely. Let's take a closer look.
Berkshire Hathaway's interest in Domino's shares
It's important to note Berkshire has purchased the US listing of Domino's shares. Filings showed the conglomerate made a new investment in Domino's Pizza Inc (NYSE: DPZ) as part of its third-quarter earnings.
Berkshire's acquisition was worth around USD $549 million at the time the filings were made at September's end.
The news sparked investor interest and led to a nearly 7% jump in the share price of Domino's US listing, according to Reuters.
It's also worth noting that Berkshire's filings don't specify if Buffett himself or his team were behind this decision.
Not that it really matters.
Berkshire's endorsement often carries weight, especially as Buffett is known for investing in consumer-focused businesses with strong brand appeal.
Does he see the same economic value in this case?
Could Domino's offer value for ASX investors?
While the Domino's shares Buffett invested in are listed in the US, ASX investors might wonder if a similar opportunity exists here.
After a rough year in which the stock has dropped more than 50%, some analysts believe Domino's on the ASX might be offering value.
Goldman Sachs, for instance, upgraded its rating on Domino's in a recent note, suggesting that management's efforts to improve profitability by closing underperforming stores could position the business for a rebound.
The broker said that Domino's focus on franchisee profitability, particularly in overseas markets, combined with easing inflation, made the current share price attractive.
It maintains a buy rating with a price target of $40, indicating a potential upside of 35% from the current level.
Beyond capital gains, Goldman projects dividend payments to rise to $1.19 per share in FY25 and $1.45 in FY26.
Time will tell if both Buffett and Goldman have their judgements right.
Foolish outlook
Although Domino's has faced challenges, including inflation and increased competition, interest is brewing in the stock again.
Berkshire's large purchase is worth considering if the company's track record of such investments is anything to go by.
In the last 12 months, Domino's stock is down 43%.
