Hedge Funds Are Betting Big on These Restaurant Stocks

#3 Starbucks Corporation (NASDAQ:SBUX)

– Number of Hedge Fund Holders (as of September 30): 54
– Total Value of Hedge Fund Holdings (as of September 30): $1.72 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 2.00%

Starbucks Corporation (NASDAQ:SBUX) is one of the best performing stocks of 2015 with a year-to-date rally of 47%. The coffee chain has either met or exceeded analyst top and bottom line expectations every quarter this year. With many Americans as addicted to coffee as they were to tobacco, the chain’s fundamentals won’t deteriorate any time soon. Given the relative strength, it’s not surprising that many hedge funds own the stock. According to our extensive database, the number of elite funds long Starbucks increased to 54 at the end of September from 46 at the end of June.

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

– Number of Hedge Fund Holders (as of September 30): 65
– Total Value of Hedge Fund Holdings (as of September 30): $5.05 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 14.60%

Yum! Brands, Inc. (NYSE:YUM) will be two different companies by the end of 2016, Yum China and Yum Brands. Bulls hope the spin-off will increase focus and improve Yum’s stock performance, which has been lacking lately. Given the stabilizing and rising Shanghai stock market, a China listing could also help. If the Chinese owned more of the company, Yum might have better same store sales and less critical media attention. Dan Loeb’s Third Point owned 11.6 million shares at the end of September.