RTTNews | May 12, 2021 03:37PM EDT

15:37 Wednesday, May 12, 2021 (RTTNews.com) - Shares of Domino's Pizza (DPZ) are trading high on Wednesday after hedge fund Pershing Square Capital's CEO Bill Ackman revealed that the company has bought 6 percent stake in the fast-food chain.

Ackman made this revelation while speaking at the virtual event Future of Everything Festival, which was organized by the Wall Street Journal. Pershing Square bought the shares at around $330 per share.

The investor said that he bought the pizza chain's shares when they "dropped dramatically in price for reasons we didn't understand and we were able to swap Starbucks for Domino's Pizza." "We didn't get as much as we would like but we own a little under 6%," Ackman added. The billionaire investor said that the company had sold its stake in coffee chain Starbucks Corp. (SBUX)and then invested in Domino's Pizza. The Starbucks shares were sold after its business was back on track following the pandemic.

Commenting on the sell-off, Ackman said, "We sold Starbucks. It got to a price that it was hard to earn the excess return we like to earn .The stock just recovered too quickly."

The investor said that he remains bullish about the pizza chain's breakthrough in technology and delivery. "Domino's is a pure franchising company and interestingly they were the first to invest in technology and delivery," he added.

The stock is currently trading at $425.26, up $0.92 or 0.69 percent on the NYSE.

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