10 Best Pizza Stocks To Buy Now

In this article, we discuss 10 best pizza stocks to buy now.

ResearchAndMarkets.com reported that in 2022, the worldwide pizza market was valued at $141.1 billion. According to the publisher’s forecasts, the market is anticipated to reach $192.4 billion by 2028, indicating a compound annual growth rate (CAGR) of 5.3% during the forecast period from 2022 to 2028. The market is being driven by several key factors, including the wide adoption of westernized lifestyles leading to changes in dietary habits, the growing preference for ordering pizzas online through websites and mobile applications, and the introduction of healthier pizza varieties such as vegan, low-calorie, and gluten-free options. According to Future Market Insights, the global frozen pizza market is expected to experience notable growth in the coming years. By 2023, it is estimated to reach a value of more than $20,196 million, and by 2033, the market is projected to be valued at $35,994 million, indicating a compound annual growth rate of 6% between 2023 and 2033. In 2022, the United States already owned a significant share of 17.2% in the global frozen pizza market, and by 2033, it is expected to capture 79.5% of the market. 

Based on the ‘State of the Pizzeria Industry Report’ by Pizza Today, the majority of pizzeria operators expressed optimism or neutrality regarding their sales in 2023. The report thoroughly examined the state of pizzerias in America by conducting surveys with more than 750 owners representing all 50 states. Approximately 20.4% of the respondents anticipated that their gross annual sales would remain steady this year. Nearly 17.5% believed there would be a growth in sales ranging from 5% to 9%, while 16.2% predicted a sales increase between 1% and 4% in 2023. 10.6% of the respondents expected a notable growth of 10% to 15% in their sales. Only 22.2% of pizzeria operators were concerned that their sales in 2023 would not exceed those in 2022. 92.5% of the operators indicated that they would raise their prices in 2023 to compensate for increased cost of raw materials. After this adjustment, about one-third of the participants forecasted an increase in total profits this year. Technomic’s ‘Technomic Pizza Consumer Trend Report’ for 2022 indicated that 65% of surveyed consumers expressed that their pizza consumption will stay consistent in 2023. Additionally, 18% of the respondents mentioned that they expected a slight increase in their pizza consumption in 2023.

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Aaron Allen & Associates, global restaurant consultants based in Florida, highlighted some trends that the pizza industry is expected to encounter in the upcoming years. Firstly, the growth of the pizza industry in the US is predicted to be slower in contrast to the overall foodservice industry. While Food Away From Home sales have been rising at an average rate of 6.2% per annum over the past three years, the pizza segment is projected to have a compound annual growth rate of 4.6%. Secondly, as the pizza segment becomes more saturated, smaller chains may experience a decline in market share or be acquired by larger players. While certain pizzerias like Cicis and Sbarro might face challenges, prominent players like Domino’s are expected to open new locations. Moreover, major industry players will introduce innovative methods of ordering, which will encourage independent operators to invest more in technology to gain a competitive edge. Pizza consumption is expected to remain steady, but there will be a consolidation trend, leading to weaker players being acquired. This presents an opportunity for private equity firms seeking to invest in restaurant concepts. Additionally, there is a growing demand for investors that can assist in reviving and enhancing mature brands that have not kept up with new trends.

Individuals seeking investment opportunities in the restaurant industry can consider buying stocks such as Yum! Brands, Inc. (NYSE:YUM), Domino’s Pizza, Inc. (NYSE:DPZ), and The Kraft Heinz Company (NASDAQ:KHC).

Our Methodology 

While we primarily chose companies that make and deliver pizzas for this list, we also added a few firms which provide raw materials/ingredients for the pizza industry, including cheese, flour, and toppings. We selected the following stocks in the pizza industry based on the hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the first quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. 

Jonathan Weiss/Shutterstock.com

Best Pizza Stocks To Buy Now

10. Rave Restaurant Group, Inc. (NASDAQ:RAVE)

Number of Hedge Fund Holders: 3

Rave Restaurant Group, Inc. (NASDAQ:RAVE) is a Texas-based company that owns and franchises pizza buffet, delivery/take-out, and express restaurants under the Pizza Inn brand in the United States and internationally. The company’s operations are divided into three segments – Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants. On May 4, Rave Restaurant Group, Inc. (NASDAQ:RAVE) reported an FQ3 GAAP EPS of $0.02 and a revenue of $3 million, up 14.5% on a year-over-year basis. 

According to Insider Monkey’s first quarter database, 3 hedge funds held stakes worth $623,000 in Rave Restaurant Group, Inc. (NASDAQ:RAVE), compared to 5 funds in the prior quarter holding stakes worth $658,000. 

In addition to Yum! Brands, Inc. (NYSE:YUM), Domino’s Pizza, Inc. (NYSE:DPZ), and The Kraft Heinz Company (NASDAQ:KHC), Rave Restaurant Group, Inc. (NASDAQ:RAVE) is one of the best pizza stocks to watch. 

9. Nestlé S.A. (OTC:NSRGY)

Number of Hedge Fund Holders: 4

Nestlé S.A. (OTC:NSRGY), a Swiss multinational food and beverage company, offers a range of frozen pizzas under the DiGiorno brand. DiGiorno’s pizza crusts include rising crust, stuffed, croissant, hand tossed, thin crust, crispy pan, and gluten free. Nestlé S.A. (OTC:NSRGY) is one of the best pizza stocks to invest in. On February 16, the company reported an FY 2022 non-GAAP EPS of CHF4.80 and a revenue of CHF94.42 billion, up 8.4% on a year-over-year basis. 

According to Insider Monkey’s first quarter database, 4 hedge funds held stakes worth $1 billion in Nestlé S.A. (OTC:NSRGY), compared to 4 funds in the prior quarter worth $1.60 billion. Tom Russo’s Gardner Russo & Gardner is the largest stakeholder of the company, with approximately 8.2 million shares worth $996.8 million. 

Here is what Semper Vic Partners has to say about Nestlé S.A. (OTC:NSRGY) in its Q2 2021 investor letter:

“I believe that Nestlé shares are well-positioned in our portfolios based on its global growth potential. Nestlé’s global growth potential is a dividend from their trusted consumer brands’ 100-year command presence in over 100 countries. Over these years, Nestlé has developed trusted and cherished iconic brands. For instance, Nestlé has over 30 brands that have over $1 billion of annual turnover. Nestlé benefits from a vast Total Addressable Market (TAM) available through developing and emerging market consumers shifting from subsistence economies to the introduction of market-based economies. Nestlé benefits from its market leadership in two key categories that evidence extremely high brand loyalty – global pet food/care and global premium coffee (led by Nestlé’s globally leading Nespresso).

More importantly, Nestlé has a culture of long-term investing. Nestlé has long excelled at securing new markets and rolling out new products, often adjacent to long-standing brands. They also have a history of internal innovation (e.g., behind launch of new brand’s single-serve coffee platform, as a result of external acquisition of companies whose brands, technology, patent, manufacturing, route-to-market, adjacent category presence, etc., offer powerful long term returns on incremental investments deployed to meet demands of growing consumers and growing affordability for those consumers of Western-style goods and services). (Click here to read full text)

8. BJ’s Restaurants, Inc. (NASDAQ:BJRI)

Number of Hedge Fund Holders: 12

BJ’s Restaurants, Inc. (NASDAQ:BJRI) owns and operates casual dining joints in the United States, offering pizzas, beers, appetizers, pastas, sandwiches, specialty salads, and desserts. BJ’s Restaurants, Inc. (NASDAQ:BJRI) is one of the best pizza stocks to invest in. On April 27, the company reported a Q1 GAAP EPS of $0.15 and a revenue of $341.28 million, outperforming Wall Street estimates by $0.11 and $9.93 million, respectively. The comparable restaurant sales increased 9.0% in the first quarter of 2023. 

According to Insider Monkey’s first quarter database, 12 hedge funds were bullish on BJ’s Restaurants, Inc. (NASDAQ:BJRI), compared to 13 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 213,200 shares worth $6.2 million. 

7. Papa John’s International, Inc. (NASDAQ:PZZA)

Number of Hedge Fund Holders: 23

Papa John’s International, Inc. (NASDAQ:PZZA) operates and franchises Papa John’s pizza delivery and carryout restaurants worldwide. Its operations are divided into four segments – Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, and International Operations. Papa John’s International, Inc. (NASDAQ:PZZA) is one of the best pizza stocks to invest in. 

On May 4, Papa John’s International, Inc. (NASDAQ:PZZA) reported a Q1 non-GAAP EPS of $0.68, beating market estimates by $0.01. The revenue of $527 million, however, fell short of Wall Street consensus by $7 million. The company also paid a $0.42 per share quarterly dividend to shareholders on May 26. 

According to Insider Monkey’s first quarter database, 23 hedge funds were bullish on Papa John’s International, Inc. (NASDAQ:PZZA), with collective stakes worth $147.7 million. Jeffrey Smith’s Starboard Value LP is the biggest position holder in the company, with 582,432 shares valued at $43.6 million. 

Choice Equities Capital Management made the following comment about Papa John’s International, Inc. (NASDAQ:PZZA) in its Q4 2022 investor letter:

“Our holdings are generally performing as anticipated. As a general statement, despite the potential economic headwinds, we continue to expect growing cash flows, and in nearly all cases operating margin expansion, into next year and beyond. Restaurants – Signs suggest our restaurant margin expansion thesis continues to play out as expected, as restaurants have historically been slow to walk back inflation-based menu price increases with their customers by lowering prices even if incoming food costs decline. Papa John’s International, Inc. (NASDAQ:PZZA) and Brinker International (EAT) continue to execute well.

We continue to find new attractive investments, particularly under a broader theme of normalization. Somewhat like our restaurant margin expansion thesis, we are finding ample opportunities in other industries where companies look poised for margin expansion on the back of cost relief from normalizing prices on items such as freight, cotton or merchandising margins.”

6. The Chefs’ Warehouse, Inc. (NASDAQ:CHEF)

Number of Hedge Fund Holders: 24

The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) was founded in 1985 and is headquartered in Ridgefield, Connecticut. The company provides specialty food products in the United States and Canada. These include artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastries. On May 3, The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) reported a Q1 non-GAAP EPS of $0.12 and a revenue of $719.6 million, outperforming Wall Street estimates by $0.01 and $83.48 million, respectively. The company estimates net sales for FY2023 to be in the range of $3.20 billion to $3.30 billion, versus a consensus revenue of $2.95 billion. 

According to Insider Monkey’s first quarter database, 23 hedge funds were bullish on The Chefs’ Warehouse, Inc. (NASDAQ:CHEF), compared to 25 funds in the prior quarter. Joe Milano’s Greenhouse Funds is the biggest stakeholder of the company, with 2.20 million shares worth approximately $75 million. 

Like Yum! Brands, Inc. (NYSE:YUM), Domino’s Pizza, Inc. (NYSE:DPZ), and The Kraft Heinz Company (NASDAQ:KHC), The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) is one of the top pizza stocks to consider.

5. Performance Food Group Company (NYSE:PFGC)

Number of Hedge Fund Holders: 29

Performance Food Group Company (NYSE:PFGC) sells and distributes food and food-related products in the United States. The company provides frozen pizza, crusts, pizza toppings, cheese, tomato sauces, and related products. Performance Food Group Company (NYSE:PFGC) is one of the best pizza stocks to invest in. On May 10, the company reported a FQ3 non-GAAP EPS of $0.83, beating market consensus by $0.12. The revenue of $13.8 billion climbed 5.3% year-over-year but fell short of Wall Street estimates by $130 million. Total organic case volume increased 3.1% for the third quarter of fiscal 2023 compared to the prior year. 

According to Insider Monkey’s first quarter database, 29 hedge funds were bullish on Performance Food Group Company (NYSE:PFGC), with combined stakes worth $736.7 million. 

4. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 34

The Kraft Heinz Company (NASDAQ:KHC) manufactures and distributes food and beverage products worldwide. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and more. It is one of the best pizza stocks to watch. On May 3, The Kraft Heinz Company (NASDAQ:KHC) reported a Q1 non-GAAP EPS of $0.68 and a revenue of $6.49 billion, outperforming Wall Street estimates by $0.08 and $100 million, respectively. The company expects 2023 organic net sales growth of 4% to 6% in contrast to 2022.

According to Insider Monkey’s first quarter database, 34 hedge funds were bullish on The Kraft Heinz Company (NASDAQ:KHC), compared to 39 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 325.6 million shares worth $12.6 billion. 

3. Domino’s Pizza, Inc. (NYSE:DPZ)

Number of Hedge Fund Holders: 34

Domino’s Pizza, Inc. (NYSE:DPZ) is a multinational pizza company that operates through three segments – U.S. Stores, International Franchise, and Supply Chain. It is one of the best pizza stocks to invest in. On April 27, Domino’s Pizza, Inc. (NYSE:DPZ) reported a Q1 GAAP EPS of $2.93, beating Wall Street estimates by $0.20. The revenue of $1.02 billion, however, missed market consensus by $10.83 million. The company also paid a  $1.21 per share quarterly dividend to shareholders on June 30. 

According to Insider monkey’s first quarter database, 34 hedge funds were long Domino’s Pizza, Inc. (NYSE:DPZ), compared to 44 funds in the earlier quarter. D E Shaw is a significant position holder in the company, with 448,865 shares worth $148 million. 

LRT Capital made the following comment about Domino’s Pizza, Inc. (NYSE:DPZ) in its October investor letter:

“Domino’s Pizza, Inc. (NYSE:DPZ) is the world’s largest franchisor of pizza restaurants with over 13,800 locations in 85 countries. As for any restaurant operator, the key metric to consider for Domino’s Pizza is same-store-sales (SSS) growth. Growing same-store-sales are ultimately how a restaurant business increases earnings from its existing assets. The company continues to impress in this criterion with SSS having grown in the U.S. for 40 consecutive quarters, and an astounding 109 straight quarters internationally.

Two-thirds of the company’s stores are currently abroad, and the international segment remains the company’s largest growth opportunity, as the penetration of convenient fast food remains lower abroad than in the United States. Pizza is a product with exceptionally high gross margins, one that “translates” well across different cultures, and one that literally “travels well”, not losing much of its appeal when delivered in a cardboard box. The rise of 3rd party delivery platforms such as Uber Eats, Doordash and Grubhub is challenging the pizza category as it has expanded the number of choices consumers have for convenient takeout. However, the economics of food delivery remain challenging for most restaurants and platforms alike25, while pizza delivery continues to be highly profitable. Regardless of how the “delivery wars” currently playing out end, Domino’s financial results show little impact of this increased competition, and the company continues to deliver exceptional financial performance…” (Click here to read the full text)

2. Bunge Limited (NYSE:BG)

Number of Hedge Fund Holders: 37

Bunge Limited (NYSE:BG) is an agribusiness and food company that operates through four segments – Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Milling segment of the company offers wheat flours and bakery mixes, masa and flours, corn-soy blends, whole grain and fiber ingredients, die-cut pellets, and non-GMO products. Bunge Limited (NYSE:BG) is one of the best pizza stocks to invest in. On May 11, the company declared a $0.6625 per share quarterly dividend, a 6% increase from its prior dividend of $0.6250. The dividend is payable on September 1, to shareholders of record on August 18. 

According to Insider Monkey’s first quarter database, 37 hedge funds were bullish on Bunge Limited (NYSE:BG), compared to 50 funds in the earlier quarter. Anand Parekh’s Alyeska Investment Group is the largest stakeholder of the company, with 834,866 shares worth approximately $80 million. 

Here is what Old West Investment Management has to say about Bunge Limited (NYSE:BG) in its Q1 2022 investor letter:

“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. There are four worldwide companies that dominate the sector, the others being Archer-Daniels-Midland Cargill, and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw the Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman actually write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.

Heckman was a long time executive at Conagra Foods who obviously sensed opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…” (Click here to see the full text)

1. Yum! Brands, Inc. (NYSE:YUM)

Number of Hedge Fund Holders: 51

Yum! Brands, Inc. (NYSE:YUM) owns, operates, and franchises quick service restaurants worldwide. The company operates through four segments – the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division. Yum! Brands, Inc. (NYSE:YUM) is one of the best pizza stocks to watch. On May 3, the company reported a Q1 GAAP EPS of $1.05, falling short of Wall Street estimates by $0.07. However, the revenue of $1.65 billion outperformed market consensus by $23.55 million. The company paid a $0.605 per share quarterly dividend to shareholders on June 9. 

According to Insider Monkey’s first quarter database, 51 hedge funds were bullish on Yum! Brands, Inc. (NYSE:YUM), compared to 48 funds in the prior quarter. Brandon Haley’s Holocene Advisors is the largest stakeholder of the company, with 1.38 million shares worth $183.4 million.

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Disclosure: None. 10 Best Pizza Stocks To Buy Now is originally published on Insider Monkey.