5 Best Fast Food Stocks to Invest In

In this article, we will be taking a look at the 5 best fast food stocks to invest in. To see more of these stocks, you can go directly to see the 10 Best Fast Food Stocks to Invest In.

5. Restaurant Brands International Inc. (NYSE:QSR)

Number of Hedge Fund Holders: 32

Restaurant Brands International Inc. (NYSE:QSR) is a quick-service restaurant company operating brands such as Burger King, Popeyes Louisiana Kitchen, and Tim Hortons. It is based in Toronto, Canada.

Jake Bartlett, an analyst at Truist, holds a Buy rating on Restaurant Brands International Inc. (NYSE:QSR) shares as of April 17.

The average price target placed on Restaurant Brands International Inc. (NYSE:QSR) shares is $73. The shares were trading at $70.01 on April 28. This gives the stock an upside potential of $4.27%.

Restaurant Brands International Inc. (NYSE:QSR) had 32 hedge funds long its stock in the fourth quarter. Their total stake value was $2.3 billion.

4. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Number of Hedge Fund Holders: 42

Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates the Chipotle Mexican Grill restaurants offering burritos, quesadillas, tacos, and more. It is based in Newport Beach, California.

A Buy rating was reiterated on Chipotle Mexican Grill, Inc. (NYSE:CMG) shares by Jake Bartlett at Truist on April 26.

Analysts see Chipotle Mexican Grill, Inc. (NYSE:CMG) as a Moderate Buy, considering the stock has 20 Buy ratings and seven Hold ratings. In the fiscal first quarter of 2023, the company generated revenues of $2.37 billion, representing an increase of 17.23%.

There were 42 hedge funds long Chipotle Mexican Grill, Inc. (NYSE:CMG) in the fourth quarter, with a total stake value of $2.8 billion.

Ensemble Capital Management, an investment management company, mentioned Chipotle Mexican Grill, Inc. (NYSE:CMG) in its first-quarter 2023 investor letter. Here’s what the firm said:

“Chipotle Mexican Grill, Inc. (NYSE:CMG) (+23.12%): The company continues to attract loyal customers to their all natural, fresh food alternative to the highly processes, junk food sold by most fast food companies. Despite needing to raise prices by double digit rates to offset inflation in food prices and higher labor costs, the company has seen resilient customer demand. While digital orders have fallen from peak COVID levels, digital sales stabilized in the fourth quarter at approximately 40% of all orders or twice the volume seen pre-COVID. The company has remained busy opening new locations with a focus on those that can support a Chipotlane, the company’s drive through concept that leverages customers’ ability to order ahead on their phones to make pick up times very short. Today, 18% of all locations have a Chipotlane pick up option compared to just 3% pre-COVID.”

3. Domino’s Pizza, Inc. (NYSE:DPZ)

Number of Hedge Fund Holders: 44

Domino’s Pizza, Inc. (NYSE:DPZ) is a pizza company operating in the US and internationally. It is based in Ann Arbor, Michigan.

On April 19, Sara Senatore at BofA reiterated a Buy rating on Domino’s Pizza, Inc. (NYSE:DPZ) shares.

Analysts have placed an average price target of $342.42 on Domino’s Pizza, Inc. (NYSE:DPZ) shares, which were trading at $318.13 on April 28. This gives the stock an upside potential of 7.65%.

Domino’s Pizza, Inc. (NYSE:DPZ) was found among the 13F holdings of 44 hedge funds in the fourth quarter, with a total stake value of $1.5 billion.

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

Number of Hedge Fund Holders: 48

Yum! Brands, Inc. (NYSE:YUM) operates and franchises quick-service restaurants across the globe. Some of its brands include KFC, Taco Bell, and Pizza Hut.

Brian Mullan, an analyst at Deutsche Bank, holds a Buy rating on Yum! Brands, Inc. (NYSE:YUM) shares as of February 13.

The average price target placed on Yum! Brands, Inc. (NYSE:YUM) shares is $146.63. The shares were trading at $140.28 on April 28. This gives them an upside potential of 4.51%.

In total, 48 hedge funds were long Yum! Brands, Inc. (NYSE:YUM) in the fourth quarter. Their total stake value was $2.3 billion.

1. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 57

McDonald’s Corporation (NYSE:MCD) is one of the most renowned fast food companies in the world, offering hamburgers and cheeseburgers. It is based in Chicago, Illinois.

Analysts at Truist hold a Buy rating on McDonald’s Corporation (NYSE:MCD) shares as of April 26.

Wall Street analysts have placed an average price target of $314.97 on McDonald’s Corporation (NYSE:MCD) shares, which were trading at $295.76 on April 28. This gives the stock an upside potential of 6.48%.

Our hedge fund data shows 57 funds long McDonald’s Corporation (NYSE:MCD) in the fourth quarter, with a total stake value of $2.7 billion.

See also 10 Largest Burger Chains in the World and 25 Largest Pizza Chains in the World.