5 Best Fast Food Stocks To Buy According to Analysts

4. Papa John’s International, Inc. (NASDAQ:PZZA)

Average Analyst Share Price Upside: 30.20%

Average Analyst Share Price Target: $80.44

Papa John’s International, Inc. (NASDAQ:PZZA), operating as Papa John’s, is an American pizza restaurant chain ranked as one of the largest pizza delivery restaurant chains in the United States. It has headquarters in the Louisville, Kentucky, and Atlanta, Georgia metropolitan areas.

In its fourth-quarter 2023 results, Papa John’s International, Inc. (NASDAQ:PZZA) reported revenue of $2.1 billion, which closely aligned with analyst forecasts. However, the company exceeded expectations with statutory earnings per share of $2.48, surpassing analyst estimates by 3.5%.

According to Insider Monkey’s fourth quarter database, 19 hedge funds were bullish on Papa John’s International, Inc. (NASDAQ:PZZA), with collective stakes worth $36.5 million. Israel Englander’s Millennium Management is a notable position holder in the company, with 67,650 shares valued at $5.15 million.

Artisan Small Cap Fund made the following comment about Papa John’s International, Inc. (NASDAQ:PZZA) in its Q3 2023 investor letter:

“Notable trims in the quarter included Papa John’s International, Inc. (NASDAQ:PZZA) Advanced Drainage and BlackLine. Papa John’s is a global operator and franchisor of pizza delivery and carryout restaurants. We originally invested in the company after a complete executive management team overhaul— notably, hiring a CEO, Rob Lynch, to spearhead a turnaround. Mr. Lynch brings previous leadership experience at large franchisors Arby’s and Taco Bell—where he worked alongside current Chipotle CEO Brian Niccol—and a marketing background at P&G. At Arby’s, Mr. Lynch led a turnaround effort where he shaped the company’s successful “We have the meats!” marketing campaign. Mr. Lynch has focused on reestablishing Papa John’s premium positioning with new food options, advertising campaigns and operational cost-cutting measures meant to improve margins. While we continue to believe in the long-term turnaround story, it is taking longer than we had originally expected. We began to harvest the position to fund higher conviction ideas.”