On December 12, CNBC reported that consumers in the US are still dining out amid food inflation and affordability concerns. However, many are now ordering more appetizers instead of higher-priced entrees.
Jim Pazzanese, executive vice president of global strategic procurement of Buyers Edge Platform, which tracks supply chain data within the food service industry, said:
“Appetizer orders are up 20% year over year, even as entrees and desserts are largely flat or declining.”
Pazzanese pointed out that this shift is “visible at the item level” and noted that some popular appetizers saw sales jump even more than 30%. He called this trend in the restaurant industry the “appetizer economy.” He also said that dessert orders have dropped 2% year-over-year. Pazzanese said that one reason for the growing popularity of appetizers is that they are “more frequently tied to promotions and drink specials.” This helps make eating out more affordable.
Brian Choi, CEO of the Food Institute, said that we are seeing a “K-shaped economy” in food spending.
According to Food Institute data, food inflation lingers even when it is down from 2022 highs. Choi noted that “food price inflation has increased since the midpoint of 2025, with food-at-home prices up in the range of 1.9% to 2.7% year-over-year.”
September CPI data showed “food away from home” inflation rising higher than even food inflation overall, at 3.7%. Full-service meals inflation came in at 4.2%. This is pushing restaurants, college dining halls, and convenience stores toward more private-label spending.
With this background in mind, let’s take a look at the 13 best fast food stocks to buy.
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Our Methodology
To compile our list of the 13 best fast food stocks to buy, we looked for the biggest fast food companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fast food stocks. Next, we focused on the top 13 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 13 best fast food stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.
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13 Best Fast Food Stocks to Buy
13. Jack in the Box Inc. (NASDAQ:JACK)
Number of Hedge Fund Holders: 22
Jack in the Box Inc. (NASDAQ:JACK) is one of the best fast food stocks to buy. On December 9, RBC Capital increased its price target on Jack in the Box Inc. (NASDAQ:JACK) from $16 to $25 while maintaining an Outperform rating. This update came in a research note previewing 2026 for Restaurants and Leisure companies.
RBC Capital views Jack in the Box Inc. (NASDAQ:JACK) favorably because of the company’s strong brand, ongoing innovation in the menu, digital initiatives, and potential for meaningful unit growth at a higher average unit value. The research firm’s analyst told investors in a research note that the company will need to execute and is expected to be more exposed to a possible consumer weakness compared to other companies in the quick-service restaurant space.
Jack in the Box Inc. (NASDAQ:JACK) has also entered into a definitive agreement to sell Del Taco Holdings Inc., the company’s wholly owned subsidiary that operates and franchises over 550 Del Taco restaurants. Yadav Enterprises Inc. will acquire Del Taco Holdings Inc. for $115 million in cash, subject to certain adjustments. According to the report by Jack in the Box Inc. (NASDAQ:JACK), this deal is expected to close by January 2026.
This divestiture is part of the company’s “Jack on Track” plan, which was announced in April. This transaction will help Jack in the Box Inc. (NASDAQ:JACK) improve its balance sheet and shift to a simpler, asset-light business model. It will also help the company focus on its core Jack in the Box brand.
Jack in the Box Inc. (NASDAQ:JACK) is an American restaurant company that operates and franchises Jack in the Box, one of the nation’s top fast-food burger chains.
12. Sweetgreen, Inc. (NYSE:SG)
Number of Hedge Fund Holders: 25
Sweetgreen, Inc. (NYSE:SG) is one of the best fast food stocks to buy. On December 14, TipRanks reported that RBC Capital analyst Logan Reich reiterated a Buy rating on Sweetgreen, Inc. (NYSE:SG) with a price target of $8.
In other news, on December 2, Sweetgreen, Inc. (NYSE:SG) announced the launch of its first locations in Sacramento with two new spots opening in December. This strategic move marks the company’s entry into the Sacramento market and also builds on the company’s expansion around the country. Sweetgreen, Inc.’s (NYSE:SG) first location opened in Midtown, which will be followed by a second location at Fair Oaks + Howe.
The first Midtown restaurant has space for 20 people inside and 14 on the patio. According to the report by Sweetgreen, Inc. (NYSE:SG), customers can order in, online, or through the Sweetgreen app, which offers SG Rewards and allows members to get 10 points per eligible dollar spent to unlock perks, exclusive deals, and free items.
A second location at Fair Oaks + Howe will also boost Sweetgreen, Inc.’s (NYSE:SG) presence in the Sacramento market. In its Q3 2025 earnings, the company updated its guidance for fiscal year 2025 to 37 net new restaurant openings.
Looking further ahead, Sweetgreen, Inc. (NYSE:SG) expects 15 to 20 net new restaurant openings in fiscal year 2026.
Sweetgreen, Inc. (NYSE:SG) is a fast food company that operates a restaurant chain. It is known for its healthy salads and grain bowls made with fresh and seasonal ingredients.
11. Papa John’s International, Inc. (NASDAQ:PZZA)
Number of Hedge Fund Holders: 26
Papa John’s International, Inc. (NASDAQ:PZZA) is one of the best fast food stocks to buy. On December 15, Jefferies reiterated its Hold rating on Papa John’s International, Inc. (NASDAQ:PZZA) with a price target of $45.
Previously, on November 21, Stifel also reaffirmed its Hold rating on Papa John’s International, Inc. (NASDAQ:PZZA) with a price target of $42. This update came after an analysis of the company’s recent 10-Q filing. Stifel adjusted its financial model to account for planned cost-saving initiatives by Papa John’s International, Inc. (NASDAQ:PZZA) for 2026 and also the management’s plan to refranchise a big portion of its domestic company-owned locations over the next 2 years.
For Papa John’s International, Inc. (NASDAQ:PZZA), Stifel forecasts about $205 million in EBITDA for fiscal 2026, which represents an increase of about 4% year-over-year. The firm’s estimate falls below the Street consensus, which is $213 million. Stifel pointed out that EBITDA performance could vary significantly depending on whether the company makes an incremental investment in its marketing fund. In 2025, Papa John’s International, Inc. (NASDAQ:PZZA) made a $25 million investment in its marketing fund, raising overall advertising spending by over 20%. The firm’s EBITDA forecast for fiscal 2026 assumes a $10 million incremental marketing investment. This indicates that total advertising spend could drop year-over-year depending on system sales.
Papa John’s International, Inc. (NASDAQ:PZZA) is an American pizza restaurant company that operates one of the world’s largest pizza restaurant chains with about 6,000 restaurants in approximately 50 countries and territories.
10. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 30
The Wendy’s Company (NASDAQ:WEN) is one of the best fast food stocks to buy. On December 17, Goldman Sachs reduced its price target on The Wendy’s Company (NASDAQ:WEN) from $9 to $8 and maintained its Sell rating.
Previously, on December 3, JPMorgan also lowered its price target on The Wendy’s Company (NASDAQ:WEN) from $12 to $9 and downgraded its rating from Overweight to Neutral. The research firm cited weaker US system economics, high capital costs, and unclear plans for improvement.
JPMorgan’s analysis showed that The Wendy’s Company’s (NASDAQ:WEN) efforts to restore development remain constrained as US franchise stores struggle with average unit volumes of $1.9 million, which falls short of the $2.3 million to $2.5 million needed to make new builds feasible. The research firm noted that the company’s US franchise base faces pressure from a 4% year-over-year drop in average unit volumes in fiscal 2025. This is estimated to lower average franchise profitability to about $100,000 to $150,000. After overhead and debt service costs, this may leave just $50,000 to $80,000. This limits funds for store remodels or tech upgrades, which JPMorgan expects the company will have to contribute materially to cover. The research firm forecasts over $700 million in capital spending from fiscal 2026 through fiscal 2028.
Additionally, JPMorgan pointed out that The Wendy’s Company (NASDAQ:WEN) has only installed digital menu boards in about 700 of its 5,700 locations in the US. The remaining rollout is expected to cost around $100 million. JPMorgan believes this will likely be funded by the company, given the current franchise economics.
The Wendy’s Company (NASDAQ:WEN) is an American fast food corporation that operates and franchises more than 7,000 restaurants around the world.
9. Yum China Holdings, Inc. (NYSE:YUMC)
Number of Hedge Fund Holders: 31
Yum China Holdings, Inc. (NYSE:YUMC) is one of the best fast food stocks to buy. On December 16, TipRanks reported that Daiwa reiterated its Buy rating on Yum China Holdings, Inc. (NYSE:YUMC) with a price target of HK$450.
Previously, on November 25, CLSA slightly cut its price target on Yum China Holdings, Inc. (NYSE:YUMC) from $56 to $55 while keeping an Outperform rating on the stock. This update came after Yum China Holdings, Inc.’s (NYSE:YUMC) investor day, where the company shared its growth plans and offered detailed guidance. CLSA pointed out that store growth was better than expected. However, according to the research firm, expansion into lower-tier cities and franchise stores is expected to limit top-line growth to mid-single digits.
CLSA sees room for Yum China Holdings, Inc. (NYSE:YUMC) to improve its KFC margins if positive same-store sales growth can be achieved without higher labor costs, even when the focus of the market is on Pizza Hut’s recovery efforts.
The research firm slightly lowered its price target because of weaker unit store sales forecasts. However, CLSA continues to maintain its positive outlook on Yum China Holdings, Inc. (NYSE:YUMC) because of the stock’s protection against drops and expectations of delivery margins to improve. According to CLSA’s report, the company suggested during its investor day that it expects to raise its dividend payout starting in 2027.
Yum China Holdings, Inc. (NYSE:YUMC) is the largest restaurant company in China, operating more than 17,000 restaurants under 6 brands across more than 2,500 cities. The company operates and franchises restaurants under brands like KFC, Pizza Hut, and Taco Bell.
8. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders: 33
Restaurant Brands International Inc. (NYSE:QSR) is one of the best fast food stocks to buy. On December 18, Bernstein SocGen Group reiterated its Buy rating on Restaurant Brands International Inc. (NYSE:QSR) with a price target of $80.
Earlier, on December 9, RBC Capital increased its price target on Restaurant Brands International Inc. (NYSE:QSR) from $77 to $82 and maintained an Outperform rating in a research note previewing 2026 for Restaurants and Leisure companies. RBC Capital continues to see Restaurant Brands International Inc. (NYSE:QSR) as its “top idea” among the global franchised fast food groups. The research firm believes that the company is benefiting from improving Burger King trends in the US, faster development, and a focus on investments for growth while reducing debt.
In other news, on December 19, Restaurant Brands International Inc. (NYSE:QSR) reported that Burger King and Popeyes each named a new Head Chef from within the company. Amy Alarcon, who spent 18 years as a culinary leader and Head Chef at Popeyes, has now been appointed as Head Chef for Burger King in the US and Canada. She helped create Popeyes’ menu hits like the iconic Popeyes Chicken Sandwich.
Robert O’Brien, after 17 years as a culinary leader at Popeyes under Chef Amy, takes the Head Chef role for Popeyes in the US and Canada. He has played a key role in shaping the brand’s menu strategy, product quality, and the brand’s Louisiana flavors and culinary traditions.
Restaurant Brands International Inc. (NYSE:QSR) is a Canadian multinational fast food holding company and one of the largest quick service restaurant companies in the world. It owns famous restaurant brands like Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
7. Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holders: 33
Shake Shack Inc. (NYSE:SHAK) is one of the best fast food stocks to buy. On December 18, JPMorgan upgraded its rating on Shake Shack Inc. (NYSE:SHAK) from Underweight to Neutral but cut its price target from $95 to $90. This update came after a discussion between JPMorgan analysts and Shake Shack Inc.’s (NYSE:SHAK) CEO Rob Lynch at the company’s Atlanta Innovation Hub.
JPMorgan pointed out that the company is shifting from an “enlightened hospitality” focused fine casual concept to a more efficient operation that includes quick-service restaurant features. The research firm also noted Shake Shack Inc.’s (NYSE:SHAK) move to a free cash flow positive company while sustaining steps to blend the strongest parts of both fine casual and quick-service models.
Earlier, on December 16, Freedom Capital Markets initiated coverage on Shake Shack Inc. (NYSE:SHAK), giving the stock a Buy rating and setting the price target at $120. The firm sees Shake Shack Inc. (NYSE:SHAK) as a unique brand in the better-burger space, with several factors set to continue supporting the momentum in the company’s same-store sales and traffic.
Freedom Capital Markets highlighted significant room for growth for the company. The firm pointed to the long-term opportunity for Shake Shack Inc. (NYSE:SHAK) for about 1,500 locations in North America compared to just around 400 company-operation locations as of Q3 2025. The research firm believes that the current stock price represents a good buying opportunity, noting that investor concerns seem exaggerated and same-store sales probably picked up again in November and December.
Shake Shack Inc. (NYSE:SHAK) is an American multinational food company that operates a chain of fast-casual restaurants. It specializes in premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, and wine.
6. CAVA Group, Inc. (NYSE:CAVA)
Number of Hedge Fund Holders: 34
CAVA Group, Inc. (NYSE:CAVA) is one of the best fast food stocks to buy. On December 12, Stifel reaffirmed its Buy rating on CAVA Group, Inc. (NYSE:CAVA) with a $75 price target after talks with the company’s leadership about 2026 sales drivers and operational performance.
Stifel pointed out that even with some recent softness in comparable sales, which was partly due to record new-unit openings, the underlying demand for CAVA Group, Inc.’s (NYSE:CAVA) Mediterranean fast-casual food stays strong. The research firm highlighted the company’s solid average unit volumes and “exceptional cash returns” from new locations. Stifel also noted CAVA Group, Inc.’s (NYSE:CAVA) investments in management talent and proactive maintenance to fuel growth in the future.
The research firm also noted that initiatives including new menu items like salmon and system-wide assistant general manager training could pressure margins temporarily. However, these investments will help CAVA Group, Inc. (NYSE:CAVA) build scalability in the long term. Stifel also sees big potential for the company to ramp up paid advertising to support customer penetration.
Previously, on December 4, Truist Securities initiated coverage on CAVA Group, Inc. (NYSE:CAVA), giving the stock a Buy rating and setting the price target at $66. The research firm sees the company as the leading player in the Mediterranean fast-casual restaurant industry. Truist Securities expects CAVA Group, Inc. (NYSE:CAVA) to stay among the fastest-growing restaurant chains.
The firm noted that increased brand awareness, menu innovation, digital penetration, loyalty programs, catering, and improved service speeds and capabilities as potential drivers of same-store sales growth.
CAVA Group, Inc. (NYSE:CAVA) is an American food and restaurant company that operates a chain of Mediterranean fast-casual restaurants.
5. Wingstop Inc. (NASDAQ:WING)
Number of Hedge Fund Holders: 39
Wingstop Inc. (NASDAQ:WING) is one of the best fast food stocks to buy. On December 15, Jefferies reiterated its Buy rating on Wingstop Inc. (NASDAQ:WING) with a price target of $350 after meeting with the company’s CEO, Michael Skipworth, CFO Alex Kaleida, and President of International, Raj Kapoor, during investor meetings in Australia. The meetings included a visit to Wingstop Inc.’s (NASDAQ:WING) first location in Sydney.
Jefferies pointed out that the location in Sydney is “performing very well” and it shows the “evolution/success of international brand partners as growth takes hold in various countries.” The research firm sees near-term trends for Wingstop Inc. (NASDAQ:WING) as “likely stable but choppy.” Jefferies identified factors in place that can speed up same-store sales through 2026 and beyond. The firm pointed to strong growth potential ahead, with average unit volumes expected to rise from about $2 million to a $3 million target.
Earlier, on December 9, RBC Capital raised its price target on Wingstop Inc. (NASDAQ:WING) from $300 to $350 and kept an Outperform rating in a research note previewing 2026 for Restaurants and Leisure companies. The research firm described Wingstop Inc. (NASDAQ:WING) as one of its top picks for 2026 in the restaurant sector.
RBC Capital sees a long runway for Wingstop Inc. (NASDAQ:WING) in the US. It also noted that the company has just started its international expansion. The research firm believes that the company’s growth profile supports the stock’s premium valuation, which RBC Capital sees as “sustainable.”
Wingstop Inc. (NASDAQ:WING) is an American fast-casual restaurant chain that operates and franchises more than 3,000 locations around the world. It specializes in classic and boneless wings, tenders, and chicken sandwiches.
4. Yum! Brands, Inc. (NYSE:YUM)
Number of Hedge Fund Holders: 41
Yum! Brands, Inc. (NYSE:YUM) is one of the best fast food stocks to buy. On December 9, Stifel reiterated its Hold rating on Yum! Brands, Inc. (NYSE:YUM) with a price target of $160. This update comes as the company is looking at strategic options for its Pizza Hut business.
Stifel’s analysis suggested that divesting Pizza Hut could boost the company’s overall growth outlook. However, it might lead to lower absolute earnings, which could cancel out any possible valuation gains. The research firm pointed out that divesting the Pizza Hut business could remove “a key source of underperformance risk” and improve investor confidence in more reliable growth ahead for Yum! Brands, Inc. (NYSE:YUM).
Stifel indicated that its view on Yum! Brands, Inc. (NYSE:YUM) has turned “more constructive.” The strategic review shows that the company’s new CEO is serious about boosting value for shareholders. The research firm’s analysis indicates that it would consider recommending shares if the stock dips due to any market moves.
Earlier, on December 5, Piper Sandler also reaffirmed its Neutral rating on Yum! Brands, Inc. (NYSE:YUM) with a price target of $158 as the company explores strategic options for its Pizza Hut business. Piper Sandler pointed out that a complete sale of the business would likely be dilutive to the company’s earnings.
The research firm also indicated that any gains in valuation from divesting the Pizza Hut business are already priced into the stock. Piper Sandler is doubtful about multiple expansion after an actual divestment. The firm pointed out that it is “not obvious” that any further valuation gains would materialize.
Yum! Brands, Inc. (NYSE:YUM) is an American multinational fast food company that operates well-known brands like KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. With restaurants in over 155 countries and territories, it is one of the largest restaurant companies in the world.
3. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Number of Hedge Fund Holders: 52
Domino’s Pizza, Inc. (NASDAQ:DPZ) is one of the best fast food stocks to buy. On December 9, RBC Capital reiterated its Sector Perform rating on Domino’s Pizza, Inc. (NASDAQ:DPZ) with a price target of $450.
Earlier, on December 2, Bernstein analyst Danilo Gargiulo also reaffirmed a Market Perform rating on Domino’s Pizza, Inc. (NASDAQ:DPZ) and kept the price target at $490. Bernstein believes that the pizza company can leverage its large size and take advantage of competitor weakness, which should help it gain more market share faster. The research firm expects Domino’s Pizza, Inc. (NASDAQ:DPZ) to follow a more aggressive value strategy, which will make it difficult for competitors to keep up and sustainably match these offerings.
On the value front, the company’s management has suggested expectations for continued gains. Bernstein expects Domino’s Pizza, Inc. (NASDAQ:DPZ) to launch a new value program in 2026, which could be similar to the earlier “Best Deal Ever” and “emergency pizza” promotions. Additionally, the company also aims to spend more on advertising than its competitors. Such strategic moves align with the management’s aim of gaining market share by offering better deals and capturing sales from nearby competitors.
Bernstein pointed out other catalysts for Domino’s Pizza, Inc. (NASDAQ:DPZ). These include the full implementation of DoorDash in the third quarter, the launch of a stuffed-crust pizza at the end of the first quarter, and gains from the loyalty program.
Domino’s Pizza, Inc. (NASDAQ:DPZ) is an American multinational pizza company. With over 21,000 stores in more than 90 markets, it operates one of the largest restaurant chains in the world.
2. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 65
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the best fast food stocks to buy. On December 19, Evercore ISI reiterated its Outperform rating on Chipotle Mexican Grill, Inc. (NYSE:CMG) with a $45 price target. Evercore ISI noted a modest improvement in quarter-to-date sales trends in recent weeks and increased its Q4 2025 same-store sales forecast from -4% to -3%.
The research firm also raised its Q4 2025 EPS forecast from $0.23 to $0.24. This improvement is attributed mainly to Chipotle Mexican Grill, Inc.’s (NYSE:CMG) Buy One Get One promotions. For fiscal year 2026, Evercore ISI lifted its EPS estimate from $1.17 to $1.19, which represents a 3% year-over-year increase. This update comes after the company announced a new protein menu, which is seen as the first step in a more aggressive marketing calendar.
On December 18, Goldman Sachs also reaffirmed its Buy rating on Chipotle Mexican Grill, Inc. (NYSE:CMG) with a price target of $45 after the company announced a new High Protein Menu launching December 23 in the US and Canada. Goldman Sachs pointed out that this move strategically utilizes Chipotle Mexican Grill, Inc.’s (NYSE:CMG) strengths in customizable, clean-label ingredients and responsibly sourced proteins to position the brand better in the growing high-protein and better-for-you segment of the food sector.
Additionally, Goldman Sachs noted that the new menu seems designed to tap into two large consumer trends: the growing adoption of GLP-1 medications and a growing focus on macronutrients, especially protein, with certain bowls and salads described as “GLP-1 friendly.”
Chipotle Mexican Grill, Inc. (NYSE:CMG) is an American restaurant company that operates a multinational chain of fast-casual restaurants specializing in Mexican food, including burritos, quesadillas, tacos, salads, and bowls.
1. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 83
McDonald’s Corporation (NYSE:MCD) is one of the best fast food stocks to buy. On December 15, Jefferies reiterated a Buy rating on McDonald’s Corporation (NYSE:MCD) with a price target of $360.
Earlier, on December 10, Bernstein SocGen Group had also reaffirmed its Market Perform rating on McDonald’s Corporation (NYSE:MCD) and kept the price target at $320. Bernstein SocGen Group’s analysis indicates that there is huge potential in the company’s a la carte pricing. This is true even when McDonald’s Corporation (NYSE:MCD) has recently been focusing on value offerings.
The research firm pointed out that the fast food company has launched many value deals and promotions. These include the $5 meal deal, which McDonald’s Corporation (NYSE:MCD) introduced in June 2024. Other value-focused offerings include the Buy One Add One program launched in January 2025 and the Extra Value Meals that the company introduced in September 2025.
Despite this focus on value deals, Bernstein SocGen Group thinks McDonald’s Corporation (NYSE:MCD) could further improve its a la carte pricing approach. The firm pointed to Taco Bell’s “10 items under $3 cravings value menu” as a possible example to follow.
However, the firm kept its Market Perform rating as McDonald’s Corporation (NYSE:MCD) continues to face tough competition in the fast food industry. The company is looking to balance value deals with its profitability targets.
McDonald’s Corporation (NYSE:MCD) is an American multinational fast food chain. It is one of the world’s largest foodservice retailers with more than 40,000 restaurants around the world.
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