11 Best Food Stocks to Buy According to Wall Street Analysts

3. Yum China Holdings, Inc. (NYSE:YUMC)

Average Price Target Upside Potential According to Analysts: 19.80%

Number of Hedge Fund Holders: 31

Yum China Holdings, Inc. (NYSE:YUMC) is one of the best food stocks to buy according to Wall Street analysts. On July 7, BofA Securities reduced its price target for Yum China Holdings, Inc. (NYSE:YUMC) from $60.50 to $56.50 but kept a “Buy” rating.

The firm pointed out that Yum China Holdings, Inc. (NYSE:YUMC) has underperformed the MSCI China index by 16% since Liberation Day. This weaker performance was mainly attributed to investors reassessing the company’s long-term growth after Yum China Holdings, Inc. (NYSE:YUMC) shifted its focus to smaller stores and franchising.

BofA’s channel checks showed that Yum China Holdings, Inc.’s (NYSE:YUMC) same-store sales growth (SSSG) was around 0-1% in the second quarter. There were also indications that the performance in June might surpass expectations. BofA also observed sequential delivery order growth of over 10% in the past weekend.

The research note also mentioned that Meituan and Alibaba have started offering strong delivery subsidies. These discounts could help Yum China Holdings, Inc. (NYSE:YUMC) achieve same-store sales growth in the third quarter of 2025, which is usually a busy season for the company. The research firm expects same-store sales to improve in the second half of 2025.

Yum China Holdings, Inc. (NYSE:YUMC) is the largest restaurant company in China, operating more than 16,000 restaurants under 6 brands across more than 2,300 cities. The company operates and franchises restaurants under brands like KFC, Pizza Hut, and Taco Bell.