Shake Shack, Darden, Yum! ‘Top Picks’ for 2025 Says Oppenheimer | Global News Avenue

Oppenheimer analysts say Olive Garden, KFC and Shake Shack look to be particularly attractive investments in 2025.

Um! brand(Yum Brands), the parent company of KFC and Taco Bell; Darden Restaurant (direct reductase), the group behind Olive Garden and LongHorn Steakhouse; and burger chain Shake Shack (Shaq) received “Preferred” honors in the investment firm’s 2025 annual investment report Dining room prospect.

The trio stand out for their bright future Same store sales Those forecasts are coupled with, in some cases, new leadership and marketing pushes, Oppenheimer analysts said in a note released Monday. The firm upgraded all three companies to “outperform.”

Analysts See Growth at Yum! brand unit

Name Yum! Oppenheimer analysts said the restaurant giant, which counts KFC as one of its preferred brands, will report a decline in same-store sales in 2024 but may rebound in 2025. They expect growth across KFC’s global product portfolio, Taco BellOppenheimer expected to obtain market share. Analysts investing in Yum Brands said the brand is now cautious given “subdued” investor sentiment on the stock.

Oppenheimer said Darden’s same-store sales are also expected to improve, benefiting as headwinds that have hampered fine dining subside. Analysts say Olive Garden’s future looks particularly positive, stressing that the restaurant chain is starting to offer food deliveryand improve its marketing efforts.

Shake Shack’s new leadership appeals to Oppenheimer, who praised new chief executive Rob Lynch’s efforts to make the restaurant chain more efficient and refresh its approach to the burger business. marketing.

The restaurant industry is expected to have a healthier year

wider catering industry Analysts said conditions would be healthier in 2025 after foot traffic fell for much of 2024, noting that order volumes had picked up in recent months. The group said lower menu price increases could help sustain the momentum. Increase raw materials, supply and Labor cost Oppenheimer said it expects average price increases to fall to 2% to 3% by the end of 2025.

“(Employee) turnover is reaching record lows,” the report said. “This allows Restaurant Restore normalized menu price increases and enable “value” products without disabling them margin“.