In this article, we discuss the 5 best coffee stocks to buy now. If you want to read about some more best coffee stocks, go directly to the 11 Best Coffee Stocks to Buy Now.
5. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders: 27
Restaurant Brands International Inc. (NYSE:QSR) operates as a quick-service restaurant company in Canada and internationally. These restaurants sell premium coffee, and hot and cold specialty drinks.
On November 22, investment advisory RBC Capital maintained an Outperform rating on Restaurant Brands International Inc. (NYSE: QSR) stock and raised the price target to $80 from $70. Analyst Christopher Carril issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pershing Square is a leading shareholder in Restaurant Brands International Inc. (NYSE:QSR) with 24.2 million shares worth more than $1.3 billion.
In its Q2 2022 investor letter, Pershing Square Holdings, an asset management firm, highlighted a few stocks and Restaurant Brands International Inc. (NYSE:QSR) was one of them. Here is what the fund said:
“Restaurant Brands International Inc. (NYSE:QSR)’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its four leading brands: Burger King, Tim Hortons, Popeyes, and Firehouse Subs.
QSR is investing in each of its brands to position them for sustainable, long-term growth. As Canada reopened, Tim Hortons’ same-store sales returned to growth during the quarter compared to pre-COVID levels, driven by growth across all dayparts, formats, regions and product categories aside from hot beverages. The company is focused on executing the next phase of its “Back to Basics” plan by extending its beverage platform, capturing a greater share of afternoon foods and continuing its brand modernization. Longer-term, management believes it can sustainably grow same-store sales at a low-single-digit rate.
At Burger King in the U.S., the company also reported improved results and narrowed the gap with its peers. Recently-appointed Burger King U.S. President Tom Curtis and his team have begun to lay the foundation for a return to sustainable growth. We believe the company has a meaningful opportunity to reinvigorate growth and modernize its store base through a reinvestment plan. The company will be unveiling its “reclaim the flame” plan to franchisees next month…read more
4. Yum China Holdings, Inc. (NYSE:YUMC)
Number of Hedge Fund Holders: 27
Yum China Holdings, Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China. The firm owns Lavazza Group, one of the most famous Italian coffee brands in the world. On November 1, Yum China Holdings declared a quarterly dividend of $0.12 per share, in line with the previous. The forward yield was 1.16%. On November 1, Yum China posted earnings for the third quarter of 2022, reporting earnings per share of $0.49. The revenue over the period was $2.21 billion, up 7.8% compared to the revenue over the same period last year.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm GuardCap Asset Management is a leading shareholder in Yum China Holdings, Inc. (NYSE:YUMC) with 8.98 million shares worth more than $425.2 million.
In its Q2 2022 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and Yum China Holdings, Inc. (NYSE:YUMC) was one of them. Here is what the fund said:
“Yum China Holdings, Inc. (NYSE:YUMC) – With the world emerging after two years of COVID, the extreme Shanghai lockdowns caught the company and frankly us a little by surprise. While the proposition for domestic KFC roll-out remains intact Yum China has not behaved like a Stalwart this year.”
3. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 39
Monster Beverage Corporation (NASDAQ:MNST) engages in the development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. It sells brewed premium coffees, creamy milk, and the Monster energy blend for a strong iced coffee energy drink. On November 15, English football club Newcastle United announced the signing of a new partnership with Monster Energy to become the club’s official energy drink partner in an undisclosed multi-year deal.
On November 29, Argus analyst John Staszak maintained a Buy rating on Monster Beverage Corporation (NASDAQ:MNST) stock and raised the price target to $118 from $113, noting that shares remain attractive despite investor concerns about rising input costs and higher freight rates.
At the end of the third quarter of 2022, 39 hedge funds in the database of Insider Monkey held stakes worth $1.96 billion in Monster Beverage Corporation (NASDAQ:MNST), compared to 46 in the preceding quarter worth $2.4 billion.
In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Monster Beverage Corporation (NASDAQ:MNST) was one of them. Here is what the fund said:
“Monster Beverage Corporation (NASDAQ:MNST) develops and sells energy drinks and concentrates. The company’s shares outperformed, driven by an impressive earnings report highlighted by better-than-expected organic growth. Management also gave guidance that indicated a potential bottom in gross margins, as well as upcoming price increases that helped give investors confidence in its growth outlook.”
2. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 50
McDonald’s Corporation (NYSE:MCD) operates and franchises McDonald’s restaurants around the world. These restaurants sell coffee as well. On November 28, the successor to McDonald’s in Russia was set to add nine more restaurants to its portfolio next month, as the former franchisee agreed to join the new brand.
On October 28, RBC Capital analyst Christopher Carril maintained an Outperform rating on McDonald’s Corporation (NYSE: MCD) stock and raised the price target to $295 from $275, noting that the company’s third-quarter earnings beat highlighted its ability to play both offense and defense amid macro uncertainty.
At the end of the second quarter of 2022, 50 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in McDonald’s Corporation (NYSE:MCD), compared to 58 in the previous quarter worth $2.7 billion.
1. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 55
Starbucks Corporation (NASDAQ:SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. On November 28, Target declared that it had expanded Starbucks’ curbside pickup service. Target will deliver Starbucks food and beverages in its Drive-Up curbside service at selected locations.
On November 4, Evercore ISI analyst David Palmer maintained an Outperform rating on Starbucks (NASDAQ: SBUX) stock and raised the price target to $97 from $95, noting that the advisory was less worried about financial year 2023 sales and earnings following the company’s fourth quarter reports.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Starbucks Corporation (NASDAQ:SBUX) with 5.8 million shares worth more than $444.7 million.
In its Q2 2022 investor letter, Matrix Asset Advisors, an asset management firm, highlighted a few stocks and Starbucks Corporation (NASDAQ:SBUX) was one of them. Here is what the fund said:
“Starbucks Corporation (NASDAQ:SBUX) is a premier global coffee brand supported by over 32,600 stores across the world. The firm has a long history of beverage innovation and strong employee/barista relations with the firm paying above-market wages and benefits. Starbucks has a strong balance sheet and finances. The company generates steady and consistent cash flow, selling millions of cups of premium coffee every day. The company’s share price declined in part due to its large business in China which was largely shut down due to Covid restrictions and because of rising commodity and labor costs. We think the shares are attractively priced for a company that should grow 10% plus per year with a dividend yield of 2.6% at our average cost.”
You can also take a peek at 11 Best Delivery Stocks To Buy and 12 Biggest Militaries in the World.
