12 Best Restaurant Stocks to Buy According to Hedge Funds

1. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 84

Starbucks Corporation (NASDAQ:SBUX) is one of the most well-known restaurant brands in the world. As of the end of fiscal 2024, it had over 40,000 locations in more than 80 countries. The company is divided into three business segments: channel development (grocery and ready-to-drink beverages), international markets, and North America. Sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee, single-serve items, and company-operated outlets are the main sources of income for the coffee business. The stock jumped more than 6% YTD, making it the Best Restaurant Stock.

In line with the “Back to Starbucks” concept of the company’s new CEO, Brian Niccol, Starbucks Corporation (NASDAQ:SBUX) business strategy will probably undergo a significant adjustment. The company continues to operate in a global category of one, with $36 billion in revenue in 2024, surpassing its nearest global competitor, Inspire Brands’ Dunkin’ Donuts, by a factor of three globally and a factor of two in its home market of the United States.

In the recent quarter, Starbucks Corporation (NASDAQ:SBUX) has shown excellent operational and customer-focused momentum in North America. Partner engagement is increasing, and employee turnover is falling to less than 50%, both of which improve the consumer experience. The firm has resumed positive comparative sales and transaction growth in Canada, indicating a turnaround and room for expansion. Algorithm-driven technology and labor deployment tactics were used in a successful pilot project that improved service speed and connection, reducing in-cafe wait times by two minutes and boosting transactions. In addition to stabilizing traffic from non-Starbucks Rewards members and a decline in consumer complaints regarding wait times, brand sentiment and market share are increasing. Eight of the top ten worldwide markets reported flat or positive comparable sales, with the UK, Middle East, and Japan topping the improvements, showing that the global recovery is also underway.

Overall, SBUX ranks first among the 12 Best Restaurant Stocks to Buy According to Hedge Funds. While we acknowledge the potential of restaurant companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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