7 Cheap Food Stocks to Buy According to Analysts

4. Restaurant Brands International Inc. (NYSE:QSR)

Price Target Upside: 17.58% 

Number of Hedge Fund Holders: 22 

Restaurant Brands International Inc. (NYSE:QSR) is a global fast-food powerhouse that owns and operates four major quick-service restaurant chains: Burger King, Tim Hortons, Popeyes, and Firehouse Subs.

Restaurant Brands International Inc. (NYSE:QSR)’s international expansion results in a steady and growing cash flow. A noteworthy feature of the company’s balance sheet is its cash excess, which exceeds $1 billion. Additionally, consumers migrating away from average and toward more economical meals will likely balance any loss of pricing power and volume decreases during the economic slump.

Restaurant Brands International Inc. (NYSE:QSR) is focusing on revitalizing the Burger King franchise, having acquired Carroll’s Restaurant Group, its largest franchisee, and Popeye’s China. The company plans to franchise most of Carroll’s locations while seeking a new partner for the China chain. Meanwhile, the Tim Horton’s segment has rebounded, with sales rising 30% in 2023 due to initiatives aimed at expanding market appeal. Total sales in the second quarter reached $2.08 billion, boosted by the acquisition of Burger King restaurants in the U.S.

As of Q2 2024, 22 hedge fund holders held stakes in the stock according to Insider Monkey database. The largest stakeholder among these was Pershing Square with 23,142,542 shares worth $1,628,540,681. The stock holds a Moderate Buy rating based on 19 Wall Street analysts. Analysts have set a 12-month average price target of $84.33 for Restaurant Brands International, with forecasts ranging from a low of $74.00 to a high of $95.00. This average target indicates a potential 19.09% increase from the current price of $70.81.