10 Best Restaurant Stocks to Buy Today

2. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 63

McDonald’s Corporation (NYSE:MCD), a giant in the fast-food restaurant industry, that is based in the U.S., has let out franchises in over 100 countries!

The stock has an interest of 63 hedge funds, that have a stake of $2.3 billion in the stock! The biggest chunk of this belongs to Citadel Investment Group and Bridgewater Associates, who have investments of $665 million and $343.4 million, respectively.

This year hasn’t been very kind to MCD investors. The stock was trading above the $300 mark in January and currently sits at $250. Twenty-one years ago, during another fast food price war episode we remember MCD shares trading at $15. Recessions and price wars aren’t new to MCD and MCD shares may even lose more than half of its value, but it has proven to be a survivor over the last two decades. Currently it trades at a P/E of 21 which isn’t very expensive at all for this stable dividend stock either. If you don’t mind short-term volatility, MCD is a good long-term investment at its current price. It won’t make you rich, but it won’t disappoint you over the next 10-20 years. However, if you are a little bit greedy like us, you can be more patient and try to pick up MCD shares at lower prices over the next 12 months or so. Right now, the bears are in charge of the MCD shares and they think consumers at the low end of the income distribution have less disposable income to spend on restaurants. What they don’t remember is the fact that MCD shares declined by around 20% during the 2008-2009 recession while the broader market’s drawdown was around 50%.