The 8 Best Fast Food Stocks To Buy Now In 2023

Written By Ben Broadwater

Posted July 25, 2023

Fast food stocks are popular among investors because the fast food industry is a large and growing market. People love fast food because it is convenient, affordable, delicious, and varied. Fast food restaurants are typically available 24 hours a day, 7 days a week, and they are often located in busy areas where people are on the go.

fast food stocks

The 8 Best Fast Food Stocks To Buy Now

  1. McDonald's Corporation (NYSE: MCD)
  2. Restaurant Brands International Inc. (NYSE: QSR)
  3. Yum! Brands, Inc. (NYSE: YUM)
  4. The Wendy's Company (NASDAQ: WEN)
  5. Darden Restaurants, Inc. (NYSE: DRI)
  6. Jack in the Box Inc. (NASDAQ: JACK)
  7. Bloomin' Brands, Inc. (NASDAQ: BLMN)
  8. Shake Shack Inc. (NYSE: SHAK)

Fast food is also relatively affordable, with a meal typically costing less than a meal at a sit-down restaurant. In addition, many fast food restaurants have signature menu items that people have come to love, such as the Big Mac, the Whopper, and the Filet-O-Fish. Finally, there is a wide variety of fast food options available, so there is sure to be something to satisfy everyone's taste.

Of course, there are also some potential downsides to eating fast food. Fast food is often high in calories, fat, and sodium. It can also be low in nutrients.

Overall, the fast food industry is a popular and growing market, and fast food stocks can be a good investment for investors who are looking for exposure to this sector.

Here are some additional reasons why fast food stocks are popular among investors:

  • Fast food companies have a strong track record of profitability. The fast food industry is a very competitive market, but the leading companies have been able to consistently generate strong profits.
  • Fast food companies are expanding internationally. The fast food industry is still growing in many parts of the world, and the leading companies are expanding their operations into new markets.
  • Fast food companies are investing in innovation. The leading fast food companies are constantly innovating to keep their products fresh and appealing to consumers.

Of course, there are also some risks associated with investing in fast food stocks. These risks include:

  • The fast food industry is cyclical. The demand for fast food can fluctuate with economic conditions.
  • Fast food companies face competition from other restaurant chains. The fast food industry is a very competitive market, and the leading companies face competition from other restaurant chains, such as casual dining restaurants and coffee shops.
  • Fast food companies are subject to food safety concerns. The fast food industry has been the subject of some food safety concerns in recent years.

8 Fast Food Stocks To Sink Your Teeth Into

fast food stocks chart

McDonald's Corporation (NYSE: MCD)

First on our list of fast food stocks to buy now is none other than McDonald's. This global fast-food giant is one of the most recognizable brands worldwide. It operates in over 100 countries, serving a wide range of menu items, including the famous Big Mac, Chicken McNuggets, and fries. The company's financial performance has been robust, with consistent revenue growth over the years. Despite facing some challenges in certain markets, McDonald's continues to be a dominant force in the fast-food industry. Its ability to adapt to changing consumer preferences and implement successful marketing strategies has contributed to its financial success. Additionally, McDonald's has shown a commitment to shareholders by returning value through dividends and share buybacks.

Restaurant Brands International Inc. (NYSE: QSR)

Restaurant Brands International (RBI) owns and operates several well-known fast-food brands, including Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. Financially, RBI has shown impressive growth since its formation. The company's revenue and profitability have been steadily increasing, driven by the expansion of its brands and international presence. The acquisition of Popeyes in 2017 has proven to be a strategic move, adding a popular chicken brand to RBI's portfolio and contributing to its financial success. Moreover, RBI's focus on cost efficiencies and operational improvements has positively impacted its bottom line.

Yum! Brands, Inc. (NYSE: YUM)

Yum! Brands is a leading multinational fast-food corporation that operates several well-known brands, including KFC, Pizza Hut, and Taco Bell. Financially, Yum! Brands has demonstrated strong performance, driven by its global presence and diverse brand offerings. The company's revenue growth has been fueled by successful international expansion, especially in emerging markets. Yum! Brands' ability to adapt its menus to local preferences has also contributed to its financial success. Moreover, the company's ongoing commitment to innovation and digital initiatives has allowed it to reach new customers and drive sales growth.

The Wendy's Company (NASDAQ: WEN)

The Wendy's Company is a well-known American fast-food chain famous for its square-shaped hamburgers and signature Frosty dessert. Financially, Wendy's has shown steady growth in recent years. The company's focus on quality ingredients and customer experience has resonated with consumers and helped drive sales. Wendy's has also been investing in technology and digital capabilities to enhance convenience and attract more customers. Additionally, the company's refranchising efforts have allowed it to improve its financial efficiency and profitability.

Darden Restaurants, Inc. (NYSE: DRI)

Darden Restaurants operates a diverse portfolio of casual dining restaurant chains, including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, and The Capital Grille. Financially, Darden has demonstrated strong performance in the casual dining segment. The company's revenue growth has been driven by successful menu innovations, promotional strategies, and consistent customer service across its brands. Darden's ability to adapt to changing consumer preferences and optimize its restaurant operations has contributed to its financial success.

Jack in the Box Inc. (NASDAQ: JACK)

Next on our list of fast food stocks to buy now is Jack in the Box. The fast-food chain known for its burgers and unique offerings, has shown mixed financial performance in recent years. The company has faced some challenges in certain markets, leading to fluctuations in its revenue and profitability. However, Jack in the Box's focus on menu innovation, including limited-time offers, has helped drive sales and attract customers. The company continues to invest in marketing and technology to improve its financial performance and maintain its position in the competitive fast-food market.

Sonic Drive-In Inc. (NASDAQ: SONC)

Sonic Drive-In, known for its nostalgic drive-in concept, has experienced solid financial performance in the fast-food industry. The company's revenue and profitability have been steadily growing, driven by its unique dining experience and diverse menu offerings. Sonic's focus on personalized service, innovative promotions, and digital initiatives has contributed to its financial success. The company's ability to adapt to changing consumer preferences and maintain a strong brand identity has allowed it to perform well in a competitive market.

Bloomin' Brands, Inc. (NASDAQ: BLMN)

Bloomin' Brands operates several popular casual dining brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. Financially, the company has shown steady growth in recent years. Bloomin' Brands' revenue and profitability have been positively impacted by successful menu innovations, efficient operations, and brand loyalty. The company's commitment to providing a memorable dining experience and investing in digital strategies has further contributed to its financial success.

Shake Shack Inc. (NYSE: SHAK)

Shake Shack, a fast-casual restaurant chain known for its high-quality burgers, hot dogs, and milkshakes, has demonstrated strong financial performance since its inception. The company's revenue and profitability have been steadily growing, driven by its cult-like following and expansion into new markets. Shake Shack's focus on premium ingredients, sustainable practices, and innovative menu offerings has resonated with customers and contributed to its financial success. Additionally, the company's disciplined growth strategy and operational efficiency have further bolstered its financial performance in the competitive fast-casual market.

Best Fast Food Stocks To Buy Now – Financial Breakdown

Stock

Price

Market Cap

EPS

PEG Ratio

McDonald's (MCD)

$243.92

$162.55B

$22.25

20.34

Restaurant Brands (QSR)

$75.27

$14.03B

$2.68

8.53

Yum! Brands (YUM)

$110.72

$30.64B

$2.70

13.42

Wendy's (WEN)

$17.90

$5.08B

$0.48

15.03

Darden Restaurants (DRI)

$124.28

$14.05B

$6.80

19.33

Jack in the Box (JACK)

$96.97

$3.52B

$1.91

32.51

Bloomin' Brands (BLMN)

$20.14

$1.76B

$0.40

17.87

Shake Shack (SHAK)

$107.63

$7.25B

$0.95

34.65

Top 10 Countries With The Highest Fast Food Consumption

Here are the top 10 countries with the highest fast food consumption per capita, according to a 2022 study by Statista:

  1. United States: 5,270 calories per capita per year
  2. Mexico: 4,056 calories per capita per year
  3. Netherlands: 3,954 calories per capita per year
  4. Ireland: 3,684 calories per capita per year
  5. Australia: 3,552 calories per capita per year
  6. Canada: 3,530 calories per capita per year
  7. United Kingdom: 3,498 calories per capita per year
  8. New Zealand: 3,496 calories per capita per year
  9. Belgium: 3,462 calories per capita per year
  10. Sweden: 3,430 calories per capita per year

The United States has the highest fast food consumption per capita in the world, with an average of 5,270 calories per capita per year. This is followed by Mexico, with an average of 4,056 calories per capita per year. The Netherlands, Ireland, Australia, Canada, the United Kingdom, New Zealand, Belgium, and Sweden round out the top 10.

There are a number of factors that contribute to the high level of fast food consumption in these countries. One factor is the availability of fast food restaurants. In the United States, there are an average of 5.5 fast food restaurants per square mile. This number is even higher in some countries, such as Mexico, where there are an average of 10.5 fast food restaurants per square mile.

Another factor that contributes to the high level of fast food consumption is the affordability of fast food. In the United States, a typical fast food meal costs an average of $7. This is much more affordable than a meal at a sit-down restaurant, which typically costs an average of $15.

Still Interested in Buying Fast Food Stocks?

Overall, fast food stocks can be a good investment for investors who are looking for exposure to a large and growing market. However, it is important to be aware of the risks associated with this investment before making any decisions.

To learn more about fast food stocks to buy now and other promising investment opportunities, sign up for our free Wealth Daily newsletter today.

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