5 Best Restaurant Stocks To Buy Today

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

Number of Hedge Fund Holders: 40

Yum! Brands, Inc. (NYSE:YUM) is a Louisville, Kentucky-based franchise operator of leading restaurant brands like KFC, Pizza Hut, Taco Bell, and the Habit Burger Grill.

Andrew Charles at Cowen gave Yum! Brands, Inc. (NYSE:YUM) stock an Outperform rating with a target price of $130 on October 19. The analyst has a bullish stance on Yum! Brands, Inc. (NYSE:YUM), as he anticipates the company to benefit from the high comparable store sales for Taco Bell during Q3 2022. Owing to a number of growth drivers, including the opening of new shops, an increase in same-store sales, margin improvement, and share repurchases, Yum! Brands, Inc. (NYSE:YUM) has strong growth potential for the future. In line with this view, analysts predict that the company will increase its earnings per share by 15% in 2019 and another 13% in 2024, making it one of the best restaurant stocks to hold. Yum! Brands, Inc. (NYSE:YUM) plans to increase the number of its stores by 4% to 5% annually on average.

Yum! Brands, Inc. (NYSE:YUM) was held by 40 hedge funds as of Q2 2022.