12 Best Fast Food Stocks to Buy Now

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

Number of Hedge Fund Holders: 33

Revenue growth (YOY): 6.69%

Yum! Brands, Inc. (NYSE:YUM) is a US-based restaurant operator with four brands in its portfolio: Habit Burger & Grill (almost 400 units), Pizza Hut (20,225 units), Taco Bell (8,757 units), and KFC (31,981 global units at year-end 2024). It is the second-largest restaurant company in the world, behind McDonald’s ($131 billion), ahead of Restaurant Brands International ($44 billion) and Starbucks ($30 billion), with more than $65 billion in 2024 systemwide sales. It is ranked eighth on our list of the Best Food Stocks.

The ability of the biggest operators, like Yum! Brands, Inc. (NYSE:YUM), to expedite crucial investments in e-commerce platforms, delivery integration, and technological solutions that satisfy the changing needs of the contemporary restaurant customer, despite the fact that the restaurant industry has undergone significant change in recent years, gives investors confidence. More than 50% of globally systemwide sales now come from digital channels, which analysts anticipate will continue to be a key component of its strategic playbook. Recent acquisitions show how much importance the company has placed on digital upgrades. Franchise unit economics are strengthened, and its appealing unit development flywheel is propelled by the company’s efficient and cost-effective delivery of its digital tools to franchisees.

Citi maintained a Neutral rating on Yum! Brands, Inc. (NYSE:YUM) also raised the price target from $148 to $151. In a research note, the analyst informs investors that the shares have outperformed year-to-date and that this trend should continue through Q1 earnings, barring any significant negative developments in global comp growth or store openings.