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Restaurant stocks have seen mixed results in 2024, but Goldman Sachs analyst Christine Cho is encouraged by many prominent brands amid today’s price tailwind environment . The Fast Food Analyst: Cho initiated ratings for the following fast food stocks: Wendy’s Co WEN with a Sell rating and price target of $16. Chipotle Mexican Grill, Inc CMG with a Buy rating and price target of $3,730.
Domino’s Pizza Inc DPZ with a Buy rating and price target of $612. Restaurant Brands International Inc QSR with a Buy rating and price target of $80. Starbucks Corp SBUX with a Buy rating and price target of $100.
Sweetgreen Inc SG with a Buy rating and price target of $39. Shake Shack Inc SHAK with a Buy rating and price target of $110. McDonald’s Corp MCD with a Netural rating and price target of $288.
Yum! Brands, Inc. YUM with a Neutral rating and price target of $150. Wingstop Inc WING with a Neutral rating and price target of $407.
Jack in the Box Inc. JACK with a Sell rating and price target of $55. Investment Rationale: Cho noted a key incongruency in consumer demand for fast food and fast casual establishments.
Customers say they plan to cut down on eating out, given that the value proposition of groceries is arguably higher, but are still visiting restaurants more and more. The analyst is focused on same-store sales growth (SSSG) and store location growth as determiners of company success. Drivers of SSSG include taste, speed, price, order accuracy, port.