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Warren Buffett's $585M Ice Cream Empire
7 Dec, 2025
Summary
- Berkshire Hathaway acquired Dairy Queen in the late 1990s for $585 million.
- Warren Buffett values companies with understandable economics and great people.
- Dairy Queen's 2024 sales reached $6.4 billion, outperforming competitors.
Berkshire Hathaway, the investment conglomerate steered by Warren Buffett, is the owner of the popular fast-food chain Dairy Queen. The acquisition occurred in the late 1990s, with the deal valued at $585 million through a stock swap. This move integrated Dairy Queen into Berkshire Hathaway's diverse portfolio, which spans industries like insurance and railways.
Buffett's acquisition strategy, as outlined in a 1998 shareholder letter, prioritized companies that were "understandable; possess excellent economics; and are run by outstanding people." This philosophy continues to guide the company, with current CEO Troy Bader emphasizing "passion" and "connection to the business" for leadership.
Dairy Queen has benefited from Berkshire Hathaway's ownership, enabling strategic long-term planning without public market pressures. This stability is reflected in its financial performance, with the chain achieving $6.4 billion in sales in 2024, a year of notable success even as competitors faced challenges.
