5 Best Restaurant Dividend Stocks to Buy

In this article, we discuss 5 best restaurant dividend stocks to buy. If you want to read our detailed analysis of the restaurant sector and its performance, go directly to read 10 Best Restaurant Dividend Stocks to Buy. 

5. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Fund Holders: 30

Darden Restaurants, Inc. (NYSE:DRI) is a Florida-based company that operates a diverse portfolio of full-service restaurants. It is one of the largest casual dining restaurant companies in the United States. On July 6, the company declared an 8.3% hike in its quarterly dividend to $1.31 per share. It has raised its payouts every year since reinstating its dividend in September 2020. The stock has a dividend yield of 3.11%, as recorded on July 13.

In fiscal Q4 2023, Darden Restaurants, Inc. (NYSE:DRI) reported revenue of $2.8 billion, up 6.4% from the same period last year. The company generated $1.55 billion in operating cash flow, compared with $1.26 billion in the prior-year period.

At the end of Q1 2023, 30 hedge funds tracked by Insider Monkey owned stakes in Darden Restaurants, Inc. (NYSE:DRI), worth collectively over $464.5 million. Among these hedge funds, Marshall Wace LLP was the company’s leading stakeholder in Q1.

4. Yum China Holdings, Inc. (NYSE:YUMC)

Number of Hedge Fund Holders: 35

Yum China Holdings, Inc. (NYSE:YUMC) is a company that operates and licenses various quick-service restaurant (QSR) brands in China. It is a spin-off from Yum! Brands, Inc. The company offers a quarterly dividend of $0.13 per share and has a dividend yield of 0.86%, as recorded on July 13.

In July, Yum China Holdings, Inc. (NYSE:YUMC) announced that KFC China has reached a significant milestone by opening its 500th store in Shanghai. Back in 1989, KFC China started its journey by opening its very first store at the Dongfeng Hotel on the Bund in Shanghai. Since then, the fast-food chain has grown steadily and now celebrates the opening of its 500th location in the city.

As of the close of Q1 2023, 35 hedge funds tracked by Insider Monkey were long Yum China Holdings, Inc. (NYSE:YUMC), up from 34 in the previous quarter. The stakes owned by these hedge funds have a collective value of over $963.5 million.

3. Yum! Brands, Inc. (NYSE:YUM)

Number of Hedge Fund Holders: 51

Yum! Brands, Inc. (NYSE:YUM) is next on our list of the best dividend stocks. The company’s primary focus is on the development, operation, and expansion of its portfolio of restaurant brands. It is known for its iconic brands, which include KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.

Yum! Brands, Inc. (NYSE:YUM) currently pays a quarterly dividend of $0.605 per share, having raised it by 6.1% in February this year. The company has raised its dividends consistently for the past six years in a row. The stock’s dividend yield on July 13 came in at 1.78%.

The number of hedge funds tracked by Insider Monkey owning stakes in Yum! Brands, Inc. (NYSE:YUM) grew to 51 in Q1 2023, from 48 in the previous quarter. These stakes have a consolidated value of over $1.6 billion.

2. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 64

An American fast-food chain, McDonald’s Corporation (NYSE:MCD) has been growing its dividends consistently for the past 46 years. The company offers a quarterly dividend of $1.52 per share and its dividend yield on July 13 stood at 2.06%. It is among the best dividend stocks on our list from the restaurant industry.

At the end of Q1 2023, 64 hedge funds tracked by Insider Monkey reported having stakes in McDonald’s Corporation (NYSE:MCD), up from 57 in the previous quarter. These stakes are collectively worth over $4 billion.

1. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 69

While it may not fit the traditional image of a full-service restaurant, Starbucks Corporation (NASDAQ:SBUX) operates a vast network of coffeehouse locations worldwide where customers can order a variety of beverages and food items. The company tops our list of the best dividend stocks as it has grown its dividends for 12 years straight. It pays a per-share dividend of $0.53 every quarter for a dividend yield of 2.09%, as of July 13.

According to Insider Monkey’s database of Q1 2023, 69 hedge funds owned positions in Starbucks Corporation (NASDAQ:SBUX), up from 61 a quarter earlier. The stakes held by these hedge funds are worth $2.05 billion collectively.

You can also take a look at 14 Best Multibagger Stocks to Buy for 2024 and 10 Best Potash Stocks to Buy

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