In this article, we discuss 5 best ice cream stocks to buy now. If you want to read about some more ice cream stocks, go directly to 10 Best Ice Cream Stocks To Buy Now.
5. Brinker International, Inc. (NYSE:EAT)
Number of Hedge Fund Holders: 23
Brinker International, Inc. (NYSE:EAT) engages in the ownership, development, operation, and franchising of casual dining restaurants. It is one of the premier ice cream stocks to invest in. Brinker International, Inc. (NYSE:EAT) recently reported comparable sales growth of 3.1% in FQ4, consisting of a 0.3% gain for the Chili’s chain and a 30.1% jump for the Maggiano’s chain. Operating income as a percentage of total revenues plunged to 4.4% from 10.0% a year ago. The decrease was primarily due to higher commodity costs, restaurant expenses, the impact of the additional operating week in fiscal 2021, and increased restaurant labor costs.
On August 25, RBC Capital analyst Christopher Carril kept a Sector Perform rating on Brinker International, Inc. (NYSE:EAT) stock and raised the price target to $29 from $26, denoting that the company’s Q4 results missed expectations but the tone from new CEO Kevin Hochman implied the urgency with which Brinker International, Inc. (NYSE:EAT) is focusing its efforts on improvement in revenue and margins both near and long term.
Among the hedge funds being tracked by Insider Monkey, Atlanta-based firm GMT Capital is a leading shareholder in Brinker International, Inc. (NYSE:EAT), with 2.1 million shares worth more than $46.7 million.
4. The Wendy’s Company (NASDAQ:WEN)
Number of Hedge Fund Holders: 28
The Wendy’s Company (NASDAQ:WEN) operates as a quick-service restaurant company. It is one of the top ice cream stocks to invest in. On September 07, Bernstein analyst Danillo Gargiulo initiated coverage of The Wendy’s Company (NASDAQ:WEN) stock with an Outperform rating and a $25 price target, saying that the company’s focus on breakfast and recent technology investments to spur online sales was expected to accelerate sales growth.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Trian Partners is a leading shareholder in The Wendy’s Company (NASDAQ:WEN), with 25 million shares worth more than $478 million.
3. Bloomin’ Brands, Inc. (NASDAQ:BLMN)
Number of Hedge Fund Holders: 35
Bloomin’ Brands, Inc. (NASDAQ:BLMN) owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. It is one of the elite ice cream stocks to invest in. Bloomin’ Brands, Inc. (NASDAQ:BLMN) released its Q2 results last month, reporting a quarterly revenue of $1,125 million, a 4% increase from the year-ago period. The lower revenue growth than some peers can be attributed to Bloomin’ Brands, Inc. (NASDAQ:BLMN) being more conservative with pricing, though this did hurt the company’s margins in the period.
On August 01, BMO Capital analyst Andrew Strelzik kept an Outperform rating on Bloomin’ Brands, Inc. (NASDAQ:BLMN) stock and lowered the price target to $29 from $33, stating the company’s Q2 earnings exceeded consensus as to be favorable non-operating items more than offset softer comps and restaurant margins.
At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $219 million in Bloomin’ Brands, Inc. (NASDAQ:BLMN), compared to 34 in the preceding quarter worth $337 million.
2. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 35
General Mills, Inc. (NYSE:GIS) manufactures and markets branded consumer foods worldwide. It is one of the major ice cream stocks to invest in. General Mills, Inc. (NYSE:GIS) shares have rallied after the company posted a beat-and-raise quarter. For the first quarter of its 2023 fiscal year, the Minnesota-based consumer foods manufacturer notched a 4% jump in net sales to $4.7 billion and a 13% rise in adjusted diluted EPS to $1.11. Analysts had anticipated $4.72 billion and $1.00, respectively.
On September 22, BMO Capital analyst Kenneth Zaslow kept a Market Perform rating on General Mills, Inc. (NYSE:GIS) stock and raised the price target to $85 from $80, remarking that General Mills, Inc. (NYSE:GIS) should be in a position to accelerate its growth through its connected commerce capability as it continues to build brands in a cost-effective manner across both digital and physical worlds.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in General Mills, Inc. (NYSE:GIS), with 4.6 million shares worth more than $345 million.
In its Q2 2022 investor letter, Chartwell Investment Partners, an asset management firm, highlighted a few stocks and General Mills, Inc. (NYSE:GIS) was one of them. Here is what the fund said:
“In the Dividend Equity accounts, the three best performers in Q2 includes General Mills (NYSE:GIS, 3.2%), up 12.2%. General Mills benefitted from the combination of being in a very defensive industry as well as demonstrating solid business momentum; margins have been particularly impressive, following price increases.”
1. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 50
McDonald’s Corporation (NYSE:MCD) operates and franchises McDonald’s restaurants in the world. It is one of the best ice cream stocks to invest in. McDonald’s Corporation (NYSE:MCD) recently announced that it had reached a 15-year virtual power purchase agreement with EDF Renewables North America in a bid to address its restaurant electricity carbon footprint. McDonald’s Corporation (NYSE:MCD) has committed to the purchase of clean energy from EDF’s 255 MWac/332 MWdc Apollo Solar project as part of its sustainability goals.
On September 27, Citi analyst Jon Tower kept a Neutral rating on the McDonald’s Corporation (NYSE:MCD) and lowered the target to $246 from $275, stressing that the US same-store sales of the firm would need to beat already strong expectations by a mid-single digit percentage to offset marking to market for currency and even a low-single digit decline in the Europe same-store sales outlook.
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.
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