Oppenheimer(OPY) Investopedia·2025-01-07 20:15Key Investment Picks for 2025 - Olive Garden, KFC, and Shake Shack are identified as top investment picks for 2025 by Oppenheimer analysts [1] - Yum! Brands (YUM), Darden Restaurants (DRI), and Shake Shack (SHAK) received "top pick" distinctions in the 2025 restaurant outlook [1] Reasons for Selection - The trio stood out due to promising same-store sales forecasts, new leadership, and marketing efforts [2] - Yum! Brands is expected to rebound in 2025 after declining same-store sales in 2024, with growth anticipated across KFC's global portfolio and Taco Bell gaining market share [2] - Darden Restaurants is expected to see improved same-store sales as fine dining headwinds subside, with Olive Garden benefiting from food delivery and enhanced marketing [3] - Shake Shack's new CEO Rob Lynch is praised for improving restaurant efficiency and updating marketing strategies [4] Broader Industry Outlook - The restaurant industry is predicted to have a healthier 2025 after a decline in foot traffic in 2024, with recent order pickups indicating a positive trend [5] - Menu price hikes are expected to slow, with average price increases declining to 2% to 3% by the end of 2025, as ingredient, supply, and labor costs level off [5] - Staff turnover rates are at record lows, allowing restaurants to normalize menu-price increases and offer value without harming margins [6]