12 Best Fast Food Stocks to Buy Now

4. Domino’s Pizza, Inc. (NASDAQ:DPZ)

Number of Hedge Fund Holders: 46

Domino’s Pizza, Inc. (NASDAQ:DPZ) is a restaurant operator and franchise that, as of the end of 2024, had around 21,400 locations worldwide in more than 90 international markets. Revenue is generated by the company’s network of 25 domestic (and five Canadian) dough manufacturing and supply chain facilities, which centralize purchasing, preparation, and last-mile delivery for the company’s US and Canadian restaurants; royalties and marketing contributions from franchise-operated stores; and sales of pizza, wings, salads, sandwiches, and desserts at company-owned stores. The firm holds a dominant position in the global pizza business, with total sales of around $19.2 billion in 2024. The stock surged by more than 13% YTD, which makes it one of the Best Food Stocks.

Domino’s Pizza, Inc. (NASDAQ:DPZ) is ideally positioned to handle a challenging business climate due to its 85% digital sales mix, strong reward program, and rapidly expanding carryout business. Morningstar analysts see the company’s long-term focus on protecting franchisee profits, strengthening its expanding carryout business, fortifying its tech infrastructure, and increasing store density at the market level as prudent, even though they anticipate a difficult couple of quarters with signs of consumer trade-down and declining industrywide traffic.

BofA maintained its Buy rating on Domino’s Pizza, Inc. (NASDAQ:DPZ) shares and increased its price objective from $520 to $549. The company states it is “encouraged” that the results were largely in line with its internal plan, including for continued share gains in the QSR pizza category, even though Q1 2025 domestic same-store sales growth fell short of consensus expectations. It also claims it anticipates the gap with the industry to widen further as the firm launches its partnership with DoorDash in May and benefits from its recent launch of stuffed crust pizza.