5 Best Fast Food Stocks to Buy Now

In this article, we discuss 5 best fast food stocks to buy now. If you want to read about some more fast food stocks, go directly to 11 Best Fast Food Stocks to Buy Now.

5. Domino’s Pizza, Inc. (NYSE:DPZ)

Number of Hedge Fund Holders: 32     

Domino’s Pizza, Inc. (NYSE:DPZ) operates as a pizza company in the United States and internationally. It is one of the best fast food stocks to invest in. On October 18, Domino’s Pizza stated that it is launching its first fully women operated store in Bangladesh. This is the 12th store in Bangladesh.

On October 14, BMO Capital analyst Andrew Strelzik maintained an Outperform rating on Domino’s Pizza, Inc. (NYSE:DPZ) stock and lowered the price target to $400 from $430, noting that softer margins and higher taxes had led the company’s Q3 earnings to miss the targets. 

At the end of the second quarter of 2022, 32 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Domino’s Pizza, Inc. (NYSE:DPZ), compared to 27 in the previous quarter worth $1.8 billion.

In its Q2 2022 investor letter, Pershing Square Holdings, an asset management firm, highlighted a few stocks and Domino’s Pizza, Inc. (NYSE:DPZ) was one of them. Here is what the fund said:

“Since our last update, Domino’s Pizza, Inc. (NYSE:DPZ)’s near-term business performance has shown meaningful improvement, including three-year stacked growth for the second quarter of 17% in the U.S., up 560 basis points sequentially. This improvement was driven by the full impact of its recent pricing actions, operational changes leading to improved staffing and labor utilization, and the return of its signature Boost Week promotion. These positive developments caused a significant recovery in Domino’s share price and its valuation increased to more than 28 times our estimate of next twelve months’ earnings.  In light of the company’s relatively high valuation in the context of a volatile market environment, we decided to exit our investment to raise cash for alternative investment opportunities. We have enormous respect for Domino’s and its management team led by Russell Weiner, and we expect the company to continue its long track record of success.”