We've compiled it recently 12 Best Restaurant Stocks Buyed Based on Hedge Fund. In this article, we will explore McDonald's Corp (NYSE:MCD) stance with other best restaurant stocks.
Restaurant Stock is a full-service restaurant business owned, operated and franchised with all-service restaurants that sell prepared food and beverages in retail stores.
According to estimates by the National Restaurant Association, U.S. restaurant sales were $1.1 trillion at an all-time high in 2024. Sales in the industry exceeded $1 trillion for the first time. According to the group, the industry's workforce is expected to add 200,000 jobs in 2024, with total employment of less than 16 million by the end of the year. Restaurants face increased competition and greater operating expenses, especially labor costs.
Michelle Korsmo, President and CEO of the National Restaurant Association, said:
“The restaurant industry is getting stronger due to the agility of its operators and employees, and the restaurant industry is in a strong position,” “As our report shows, the restaurant industry is in a strong position, and restaurants are looking for ways to adapt to the challenges of food costs and supply chain disruption. Restaurants respond well to their customers’ desire to have more opportunities to enjoy the restaurant’s dining, which will grow sales and grow in sales, create opportunities, and have a community opportunity, and another community opportunity.”
Nevertheless, as the macro economy continues to show signs of inflation, many diners have experienced tough times and are spending carefully. In addition, labor shortages, cost inflation, and an unstable economy that may reduce demand are issues that all restaurants are dealing with. Not every restaurant will do well in this turbulent environment. However, the most compelling financial resilience should be demonstrated by companies that provide customers with a strong value proposition and maintain a stable moat for the next few years.
According to a research report by the National Restaurant Association, restaurant business in the United States is expected to increase further in 2025, with sales expected to exceed $1.5 trillion. Employment is expected to grow by 200,000, bringing the total labor force to 15.9 million. Customer demand is still strong; 90% of adults claim they like to eat out because the taste and experience offered by restaurants are different. Value is a top priority, as 47% of operators want to launch new sales or promotions to attract customers.
However, many customers are worth more than the price: 47% of limited-editors and 64% of full-service diners are worth more than the price for the dining experience. Local traffic is a major strategic priority, with 90% of quality dining and 87% of casual diners prioritizing it over non-original sales. Although they are willing to pay, many consumers say they will eat more often if they have more money to spend more. These dynamics show cautious optimism as operators strike a balance between innovation, price and experience to promote loyalty and growth.
KPMG not only reveals the challenges, but also according to senior management, which will impact the major trends in the restaurant business this year. The restaurant business is expected to grow in 2025 as new products are introduced and more stores are opened. However, rising labor and food costs and fear of inflation pose serious problems, especially for franchisees. Operators will give high priority to digital promotion to improve customer conversions, maximize operations and modify menus to adapt to changing customer preferences to stay competitive. Reliance on third-party ordering and delivery platforms is increasingly reliant on, and industry dynamics are still shaping. Finally, it is crucial to maintain a positive workplace culture to attract and maintain talent.
Chef assembles cheeseburgers in a busy kitchen for orders.
In this article, we filtered the online rankings to form an initial list of 20 restaurant stocks. From the final dataset, we selected 12 stocks with the largest number of hedge fund investors, using Insider Monkey's 1009 hedge fund database in Q4 2024 to measure hedge fund sentiment in stocks.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 275% since May 2014, surpassing its benchmark point by 150 percentage points. ((See more details here).
Number of hedge fund holders: 67
McDonald's Corporation (NYSE: MCD) is the world's largest restaurant owner-operator, with over 43,000 locations and 115 markets in 2024, with system sales of $131 billion. The company invented the franchise model and expanded its global business by forming alliances with the Masters Franchise Party and the independent restaurant range. The majority of the company's revenue comes from the stores operated by the company in its three main areas: the U.S., internationally operated markets and the global development/licensing markets. Royalties and lease payments account for approximately 60% of the company's total revenue. Stocks grew by more than 6%, making it one of them Best restaurant stocks.
McDonald's Corporation (NYSE:MCD) released its first-quarter earnings, showing a challenging operating environment for fast-serving restaurants. Comparable sales worldwide fell by 1%, as comparable sales fell by 3.6% last year as well as the number of guests in the United States fell.
Nevertheless, McDonald's (NYSE:MCD) strategy highlights its competitive advantage in using the "MCD" framework, which includes core menu development, related marketing, and four D: development, delivery, delivery, express train and digital. The company recently highlighted the hard environment for consumer spending by using scale-driven cost advantages.
Andrew Strelzik, an analyst at BMO Capital, raised McDonald's (NYSE:MCD) price target from $340 to $345 while maintaining the company's stock's better than the outperform. In a research note, analysts told investors that the company's first-quarter results were difficult as favorable G&A and tax rates offset weaker compensation and margin pressures. Management also observed that middle-class consumers are under greater pressure on consumers, but anti-American attitudes have no effect, according to the company.
Overall, MCD Ranked third According to the list of best restaurant stocks for hedge funds. While we acknowledge the potential of MCD is an investment, our belief is that AI stocks have higher returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than MCD but have less than 5 times its earnings, check out our report The cheapest AI stock.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.