Wendy's Is A 'Show Me' Story, Goldman Sachs Analyst Says: Fast Food Joints Like Chipotle, Domino's Are Still Hot
Portfolio Pulse from Hayden Buckfire
Goldman Sachs analyst Christine Cho has initiated ratings for several fast food stocks, highlighting mixed results in the sector. Wendy's and Jack in the Box received Sell ratings, while Chipotle, Domino's, Restaurant Brands, Starbucks, Sweetgreen, and Shake Shack received Buy ratings. McDonald's, Yum! Brands, and Wingstop were rated Neutral.
June 13, 2024 | 3:54 pm
News sentiment analysis
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NEGATIVE IMPACT
Jack in the Box received a Sell rating from Goldman Sachs analyst Christine Cho with a price target of $55, driven by lower same-store sales growth, higher competition, and rising costs.
The Sell rating is based on Jack in the Box's lower same-store sales growth, higher competition, and rising costs, which are expected to negatively impact the company's performance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Goldman Sachs analyst Christine Cho has given Wendy's a Sell rating with a price target of $16, citing slowing same-store sales and higher franchise-related costs.
The Sell rating is based on specific concerns about Wendy's same-store sales growth and franchise-related costs, which are critical factors for the company's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
McDonald's received a Neutral rating from Goldman Sachs analyst Christine Cho with a price target of $288, citing resilient performance but concerns over low-income traffic and competition.
The Neutral rating reflects McDonald's resilient performance but also concerns over declining low-income traffic and increased competition.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Wingstop received a Neutral rating from Goldman Sachs analyst Christine Cho with a price target of $407, citing high valuation and slowing same-store sales growth.
The Neutral rating reflects Wingstop's high valuation and slowing same-store sales growth, balancing the company's risk/reward profile.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 100
NEUTRAL IMPACT
Yum! Brands received a Neutral rating from Goldman Sachs analyst Christine Cho with a price target of $150, driven by technology integration and value leadership but limited upside potential.
The Neutral rating is based on Yum! Brands' technology integration and value leadership, but the analyst sees limited upside potential compared to other stocks.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Chipotle received a Buy rating from Goldman Sachs analyst Christine Cho with a price target of $3,730, driven by operational improvements and growth potential in North America and Canada.
The Buy rating is supported by Chipotle's operational improvements and significant growth potential, which are expected to drive the company's performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Domino's Pizza received a Buy rating from Goldman Sachs analyst Christine Cho with a price target of $612, driven by successful marketing campaigns and strong unit economics.
The Buy rating is based on Domino's successful marketing campaigns and strong unit economics, which are key drivers of the company's growth.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Restaurant Brands International received a Buy rating from Goldman Sachs analyst Christine Cho with a price target of $80, driven by store modernization and product diversification.
The Buy rating is supported by Restaurant Brands' efforts in store modernization and product diversification, which are expected to enhance the company's performance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Starbucks received a Buy rating from Goldman Sachs analyst Christine Cho with a price target of $100, driven by new digital initiatives and potential for an inflection point.
The Buy rating is based on Starbucks' new digital initiatives, which are expected to drive an inflection point in the company's performance.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Sweetgreen received a Buy rating from Goldman Sachs analyst Christine Cho with a price target of $39, driven by trends toward health and wellness and entry into new markets.
The Buy rating is supported by Sweetgreen's alignment with health and wellness trends and its entry into new markets, which are expected to drive growth.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Shake Shack received a Buy rating from Goldman Sachs analyst Christine Cho with a price target of $110, driven by a scalable business model and franchise growth.
The Buy rating is based on Shake Shack's scalable business model and franchise growth, which are key drivers of the company's long-term performance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100