5 Best Fast Food Stocks to Buy Now

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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. It is one of the major fast food stocks to invest in. On October 19, Starbucks announced that it is planning to sell Seattle’s Best Coffee brand to Nestle. This sale will further strengthen the Global Coffee Alliance by allowing both companies to focus on their core strengths. The financial terms of the deal were not disclosed.

On September 22, Stephens analyst Joshua Long initiated coverage of Starbucks Corporation (NASDAQ:SBUX) stock with an Equal Weight rating and a $91 price target, noting that in the long-run, the firm’s brand strength, rewards program, and coffee consumption secular tailwind position the company for growth. 

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 premiere 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 10 Best Guru Stocks To Buy Now and Top 10 Health Insurance Stocks to Buy.

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