5 Defensive Restaurant Stocks To Buy Amid Recession Fears

2. Starbucks Corporation (NASDAQ:SBUX)

Number Of Hedge Fund Holders: 58

Based in Seattle, Washington, Starbucks Corporation (NASDAQ:SBUX) is an American multinational chain of coffeehouses and roastery reserves that operates in over 80 different countries and is recognized for its roasted whole beans and ground coffees, ready-to-drink beverages, and multiple food products. Barclays analyst Jeffrey Bernstein named the company as the strongest large cap stock for the next year among his defensive restaurant picks.

Earlier this May, MKM Partners analyst Brett Levy maintained a Buy rating on Starbucks Corporation (NASDAQ:SBUX) stock and lowered the price target to $98 from $105, stating that the firm has growth prospects in the long-term despite near-term headwinds.

Starbucks Corporation (NASDAQ:SBUX) is a leader among the beverage stocks on Wall Street. Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Starbucks Corporation (NASDAQ:SBUX), with 8.2 million shares worth more than $749 million.

In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Starbucks Corporation (NASDAQ:SBUX) was one of them. Here is what the fund said:

“We trimmed our positions in most of these companies in 1Q 2022 and sold our stake in Starbucks after a 12+ year holding period. In our view, Starbucks Corporation (NASDAQ:SBUX) continues to be in a unique position to serve its customers who value the quality of its products and the convenient way they can be purchased. At the same time, Starbucks’ business is maturing in western markets, and its employee and store-related costs are growing, which should lead to slower earnings growth than we would prefer and further P/E multiple compression. We believe we have better opportunities as we continue to assess the impact of these issues for Starbucks Corporation (NASDAQ:SBUX).”