5 Buy-The-Dip Restaurant Stocks to Invest in Now

1. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 58

YTD Share Price Decline as of July 22: 28.36%

Starbucks Corporation (NASDAQ:SBUX) is an American multinational chain of coffeehouses. Despite the shares declining over 28% year to date, Starbucks Corporation (NASDAQ:SBUX) remains an attractive stock to buy on the dip. On June 29, the company declared a quarterly dividend of $0.49 per share, in line with previous. The dividend is payable on August 26, for shareholders of record on August 12. 

On July 21, Citi analyst Jon Tower raised the price target on Starbucks Corporation (NASDAQ:SBUX) to $84 from $76 and kept a Neutral rating on the shares. However, the management “will tease the idea” that labor investment may be modest, and Starbucks “may meaningfully accelerate” U.S. unit growth in the next 12-24 months, added the analyst, who expects U.S. comp upside versus the Street this quarter.

According to Insider Monkey’s data, 58 hedge funds were bullish on Starbucks Corporation (NASDAQ:SBUX) at the end of March, up from 53 funds in the last quarter. Terry Smith’s Fundsmith LLP is the leading stakeholder of the company, with 8.2 million shares worth $749 million. 

Here is what Polen Focus Growth Fund has to say about Starbucks Corporation (NASDAQ:SBUX) in its Q1 2022 investor letter:

“We trimmed our positions in most of these companies in 1Q 2022 and sold our stake in Starbucks after a 12+ year holding period. In our view, Starbucks continues to be in a unique position to serve its customers who value the quality of its products and the convenient way they can be purchased. At the same time, Starbucks’ business is maturing in western markets, and its employee and store-related costs are growing, which should lead to slower earnings growth than we would prefer and further P/E multiple compression. We believe we have better opportunities as we continue to assess the impact of these issues for Starbucks.”

You can also take a look at 10 Most Shorted Stocks to Watch in July and 10 Dividend Stocks of All Time.

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