In this article, we discuss 5 defensive restaurant stocks to buy amid recession fears. You can skip our detailed analysis of these stocks and the current market situation, and go directly to 10 Defensive Restaurant Stocks To Buy Amid Recession Fears.
5. Sysco Corporation (NYSE:SYY)
Number Of Hedge Fund Holders: 31
Sysco Corporation (NYSE:SYY), one of the world’s largest broadline food distributor, is a Texas-based food company that is involved in the marketing and distribution of food products, smallwares, kitchen equipment and tabletop items to restaurants.
On June 29, Sysco Corporation (NYSE:SYY) was one of Barclays’ top picks in a defensive sector as quick service servants are gaining more traction among consumers than higher-cost casual dining. Analyst Jeffrey Bernstein raised his price target on the stock to $102 with an Overweight rating on the shares.
JPMorgan analyst John Ivankoe upgraded Sysco Corporation (NYSE:SYY) to an Overweight rating after having the food distribution stock slotted at Neutral on May 26. According to the analyst, the meeting with Sysco’s CEO and CFO gave him confidence of upcoming supply chain and delivery changes to increase market share across the broad U.S. account base. In addition, underlying demand is said to look solid, including the ability to pass on continued back-door commodity cost increases.
Insider Monkey’s Q1 database shows that Sysco Corporation (NYSE:SYY) remained popular among elite funds, with 31 hedge fund positions, up from 25 a quarter earlier. The combined value of hedge fund investments stood at over $1.71 billion. With over 11.5 million shares, Trian Partners was the company’s leading shareholder in Q1.