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13 Best Fast Food Stocks to Buy
Insider Monkey· 2025-12-22 18:29
Industry Insights - Consumers in the US are dining out despite food inflation, with a notable shift towards ordering more appetizers, which have increased by 20% year over year, while entrees and desserts remain flat or declining [1] - The trend termed the "appetizer economy" is attributed to appetizers being more frequently tied to promotions and drink specials, making dining out more affordable [1] - Food inflation persists, with "food away from home" inflation at 3.7%, and full-service meals inflation at 4.2%, indicating a K-shaped economy in food spending [2] Company Analysis - Jack in the Box Inc. (NASDAQ:JACK) is highlighted as a strong fast food stock, with RBC Capital raising its price target from $16 to $25, citing the company's strong brand and potential for unit growth [7][8] - Jack in the Box is divesting its subsidiary Del Taco Holdings Inc. for $115 million, which is part of its "Jack on Track" plan aimed at improving its balance sheet and focusing on its core brand [9][10] - Sweetgreen, Inc. (NYSE:SG) is also noted as a promising fast food stock, with RBC Capital maintaining a Buy rating and a price target of $8, alongside its expansion into the Sacramento market with new restaurant openings [11][12][14]