This Recent Acquisition By Warren Buffett's Berkshire Hathaway Outperforms Nike, Netflix And Coca-Cola In Revenue And Headcount

Warren Buffett‘s Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) has recently completed the acquisition of a business that rivals some of America’s largest companies like Nike Inc, Coca-Cola Co, and Netflix Inc in terms of revenue and headcount.

What Happened: The famed investor’s company recently acquired the remaining 20% of Pilot Travel Centers, likely spending over $13 billion in total for the truck-stop chain, which joins a collection of subsidiaries that includes Geico, Duracell, and Dairy Queen.

In 2022, Forbes ranked Pilot as the nation’s fifth-largest private company, generating an estimated $70 billion in revenue, placing it comfortably within the S&P 500’s top 100 companies by revenue. This revenue is higher than that of several corporate giants, including Nike ($47 billion), Coca-Cola ($43 billion), Netflix ($32 billion), and McDonald’s ($23 billion) in 2022, reported Markets Insider.

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Pilot also boasts an employee count of approximately 26,000, comparable to Nvidia or Visa, and double that of Netflix. However, it is worth noting that Pilot operates on a high-volume, low-margin model, with its pre-tax income in 2022 likely under $2 billion.

In 2023, Pilot’s financials weakened due to lower fuel prices and sales volumes, with revenues dropping by 23% year-on-year to $37 billion. Despite these changes, Pilot’s formidable scale makes it a likely key player in Berkshire’s future earnings.

Why It Matters: The acquisition of Pilot Travel Centers by Berkshire Hathaway has been a subject of interest in the financial world. The deal was preceded by a legal dispute over alleged buyout terms violation, which was resolved by Berkshire Hathaway in early January. This dispute arose after Berkshire Hathaway bought an 80% stake in Pilot Travel from billionaire Jimmy Haslam for over $10 billion, facing accusations of improperly altering accounting methods.

Meanwhile, in December, a high-stakes battle unfolded between Buffett and truck-stop mogul Haslam over the accounting method of Pilot Travel Centers, a company that has blossomed into an empire under Haslam’s stewardship and in which Berkshire Hathaway holds a majority stake.

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