Oct. 30 at 3:52 PM
Dutch Bros was named Mizuho Securities’ top pick in the U.S. restaurant sector, followed by Domino’s Pizza and Wingstop. Analysts, including Nick Setyan, initiated coverage on 18 restaurant stocks, giving Dutch Bros a “buy” rating with a
$70 target, citing its clear traffic growth strategy, low unit growth risk, and conservative 2026 estimates.
Mizuho described the U.S. restaurant industry as a “hyper-value environment,” with price wars driving a 10% traffic shift toward supermarkets and convenience stores. Fast-casual and pizza chains are better positioned to outperform in traffic and margins. Domino’s Pizza received a
$500 target, expected to benefit from comparable sales growth, margin expansion, and unit growth acceleration.
Wendy’s was rated “underperform” with an $ 8 target due to lack of a value strategy, CEO transition, and potential breakfast segment exit, posing risks to comparable sales and margin expectations for H2 2025 and 2026.
$BROS $DPZ $WING $WEN