Yes, it has delicious food but it also has an impressive dividend yield. There are multiple reasons to like Wendy’s Company (NASDAQ: WEN). TD Cowen analyst has recently upgraded the stock to Outperform from Market Perform and RBC Capital has a price target of $460 for the stock. The company has a long history and a solid global presence which makes it one of the top stocks to keep on your radar. Domino’s is putting its money towards store expansion and for the improvement in customer service which will pay off in the long term. It has also partnered with Uber (NYSE: UBER) to ensure high delivery growth through Uber Eats. The company saw a 6% year-over-year rise in sales and the management has aggressive plans for store expansions. The stock is up 16% year to date and is very close to the 52-week high of $409.ĭomino’s has already invested in digital ordering which has been a significant contributor to the company’s revenue and has helped increase sales. Trading at $396 today, the stock is more expensive than several other restaurant stocks in the market but it will pay off in the long-term. This is another company that continues to benefit from the high franchise fees. market remains highly profitable and the company posted a 10% rise in the operating income this quarter. In the second quarter, it managed to add 170 new stores globally and this is nothing but impressive. One driving force for the company is its growing presence in the global markets and it is expanding at a rapid pace. This brought back investor confidence and also helped with the company’s growth. Domino’s Pizza (DPZ)Ī lot of investors thought that Domino’s Pizza (NYSE: DPZ) would not be able to survive the competition but the company bounced back with solid financial results and is one of the best restaurant stocks to own right now. Do not wait for the stock to drop and grab it while you can. Several analysts have a positive outlook for the stock and Tigress Financial has set a price target of $355 with a buy rating. With this stock, there is low risk and high return in the form of steady dividends and capital appreciation. MCD enjoys a dividend yield of 2.16% and has recently announced a quarterly dividend of $1.52. Another reason to bet on the stock is its dividend yield. It is enjoying the best growth phase right now. McDonald’s has seen a significant improvement in revenue due to the new menu additions, better customer service, and improvement in the digital order and delivery service. The company is firing on all cylinders and if its business continues to grow at the same level, the stock hit a new high very soon. While the stock isn’t cheap and it is inching closer to the 52-week high of $299, there is massive upside potential from the current level. This makes it one of those restaurant stocks to buy. It is exchanging hands at $281 right now and I believe it will continue to remain in this range throughout this month. MCD stock has been trading in the range of $275 to $288 for the past month. McDonald’s is highly successful due to its franchise business and this allows it to keep the costs down while generating steady revenue. Its second-quarter results were impressive with a 12% rise in comparable store sales and a 10% rise in the U.S. With people spending in the fast food space, this company is set to benefit. Let’s take a look at the most undervalued restaurant stocks to buy this month.Ī personal favorite, I love McDonald’s for its burgers and its business. As consumers start to open their wallets, smart investors know now is the right time to buy restaurant stocks. With the upcoming festive season, I expect these companies to report high revenue and profits. The companies also benefit from school holidays, and festivals and have their own peak seasons. With the increase in food delivery services across the world, restaurant companies have been able to add a new revenue stream, and this trend is set to continue for the next few years. This has led to the rise of restaurant stocks to buy.Įven when inflation was at its peak, we saw McDonald’s (NYSE: MCD) report strong numbers, proving that consumers may compromise on luxury dining but they will still need to fill their stomachs. As the economy continues to improve, we will see companies report better revenue numbers and the restaurant sector is one space that remains protected from the extreme highs and lows to a certain extent. The summer ended on a positive note with high interest in dining out and this led to a significant surge in business for restaurants. With the economy slowly recovering from the inflationary period, we are seeing hospitality industries see a significant improvement in consumer demand.
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