MCD - Goldman Sachs warms up to restaurant stocks on recovery call

Goldman Sachs is positive on a restaurant sector recovery this year.The firm has Buy ratings on Chipotle (CMG), Domino's Pizza (DPZ), Darden Restaurants (DRI), Brinker International (EAT), Jack in the Box (JACK), McDonald's (MCD), Starbucks (SBUX) and Wingstop (WING). The firm see 13% average upside to current share prices for the group. "We expect large chains to capitalize on the digital transformation to drive top-line growth, more efficient 1x1 marketing, and strategy decisions. Strong and improving unit-level economics and share opportunities from independent restaurant closures in 2020 support unit development." Chipotle is singled out as a restaurant superstar and added to the Goldman Sachs Conviction Buy List. The restaurant stock with the highest Seeking Alpha Quant Rating is The ONE Group Hospitality.

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Goldman Sachs warms up to restaurant stocks on recovery call