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Dairy Queen Halts Middle East Expansion While Betting on AI Drive-Thrus

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Dairy Queen has paused its Middle East expansion strategy amid escalating regional instability and supply chain uncertainty, while simultaneously accelerating artificial intelligence adoption in U.S. drive-thrus as part of a broader operational modernization push.

The Berkshire Hathaway-owned chain said geopolitical tensions, including disruptions tied to conflict involving Iran and shipping risks through the Strait of Hormuz, have made franchisees more cautious about launching in new Middle Eastern markets such as Saudi Arabia. Supply chain reliability is especially critical for restaurant brands entering new territories, where rapid scale and stable logistics are essential for success.

Although Dairy Queen remains interested in long-term regional growth, executives have shifted into a wait-and-see posture as franchise partners prioritize risk management over expansion.

At the same time, Dairy Queen is focusing heavily on technology-led efficiency improvements. The company is testing AI-powered chatbot ordering systems in approximately 50 drive-thru locations, aiming to improve speed, labor flexibility, and customer experience. Early tests achieved about 90% order accuracy, with management targeting over 99% through human oversight and system refinement.

This reflects a wider quick-service restaurant industry trend, where major chains are increasingly integrating AI into frontline operations to reduce labor pressure, streamline service, and optimize customer engagement. Rather than fully replacing workers, Dairy Queen’s approach emphasizes using AI to shift staff attention toward hospitality and quality control.

The company also faces evolving consumer pressures in the U.S., where inflation and rising fuel costs are increasingly dividing customer behavior by income level. Value offerings are becoming more important for cost-sensitive consumers, while premium products remain resilient among higher-income diners.

Dairy Queen’s strategy illustrates how modern restaurant growth is being shaped simultaneously by geopolitical risk abroad and AI-enabled operational transformation at home.

Berkshire Shareholder Proposes AI Oversight Committee Amid Growing Concerns

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A shareholder of Berkshire Hathaway, the multinational conglomerate led by Warren Buffett, is urging the company to establish a committee of independent directors to oversee artificial intelligence (AI) risks. Tulipshare, an activist investment group based in London, submitted the proposal ahead of Berkshire’s annual meeting, scheduled for May 3. The resolution calls for the formation of a dedicated committee to monitor AI-related issues across the diverse businesses in Berkshire’s portfolio.

The proposal highlights the potential risks associated with AI, such as data breaches, privacy violations, business disruptions, and human rights concerns. Tulipshare argues that due to Berkshire’s vast influence across multiple industries, the company is in a unique position to lead in AI governance and ensure responsible use of the technology.

Berkshire’s spokesperson, Debbie Bosanek, confirmed that the proposal will be included in the company’s proxy statement. Warren Buffett has previously acknowledged AI’s significant potential, both for positive impact and harm. In a 2023 meeting, Buffett expressed unease about AI-generated content when an image and message surfaced that appeared to come from him, despite being fabricated.

However, Berkshire’s governance structure has traditionally been resistant to shareholder proposals calling for independent oversight. Buffett holds significant voting power—controlling over 30% of Berkshire’s voting shares—which makes it challenging for shareholder resolutions to succeed without his endorsement. Last year, a similar proposal to create an independent oversight committee for safety at Berkshire’s BNSF railroad received minimal support from shareholders.

Tulipshare argues that an AI oversight committee would align with Berkshire’s decentralized business model by providing unified oversight without disrupting the day-to-day operations of its subsidiaries. Given Buffett’s personal concerns about AI, particularly deepfake technology, the activist group suggests the proposal might gain traction.

Berkshire Hathaway owns a wide range of companies, including Geico, Brooks, See’s Candies, and Berkshire Hathaway Energy, in addition to its investments in major tech firms like Apple and Amazon. Despite Buffett’s long-standing leadership since 1965, the proposal signals growing shareholder interest in responsible AI governance within large corporations.

Magnificent Seven Set to Shed $1 Trillion in Value, Led by Apple and Nvidia

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Apple (AAPL.O) and Nvidia (NVDA.O) led a sharp sell-off in technology stocks on Monday, fueled by U.S. recession fears and Berkshire Hathaway’s (BRKa.N) decision to reduce its stake in Apple, disrupting a prolonged rally in the sector. High-performing stocks such as Alphabet (GOOGL.O), Amazon (AMZN.O), Meta Platforms (META.O), Microsoft (MSFT.O), and Tesla (TSLA.O) fell up to 12.2% in premarket trading. The losses in the “Magnificent Seven” stocks were set to erase nearly $1 trillion from their combined market value.

Chip stocks, which have been top performers in the AI boom, also tumbled. Advanced Micro Devices (AMD.O), Intel (INTC.O), Super Micro Computer (SMCI.O), and Broadcom (AVGO.O) fell as much as 10.3%. The sell-off followed a weak U.S. payrolls report on Friday, prompting investors to seek safer assets and anticipate Federal Reserve interest rate cuts to support growth.

Warren Buffett’s Berkshire Hathaway announced over the weekend that it had halved its stake in Apple, raising concerns about the tech industry’s outlook. Nvidia shares were also impacted by reports of a potential three-month delay in the launch of its upcoming AI chips due to design flaws, affecting customers such as Meta, Alphabet’s Google, and Microsoft.

Big technology stocks, which had driven Wall Street gains for over a year, have faced pressure recently due to signs that returns from significant AI investments might take longer to materialize. Shares of Amazon, Microsoft, and Alphabet, the three largest cloud-computing providers, fell after their earnings reports failed to meet high expectations of rapid growth from AI investments.

“Expectations have arguably become too high for the so-called Magnificent Seven group of companies. Their success has made them untouchable in the eyes of investors and when they fall short of greatness, out come the knives,” said Dan Coatsworth, investment analyst at AJ Bell.