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3 Food and Beverage Stocks Wall Street Thinks Could Turn Around in 2026

Dec 31, 2025 05:00:00 -0500 by Evie Liu | #Restaurants

(Magali Cohen / Hans Lucas / AFP / Getty Images)

Key Points

Food, beverage, and restaurant stocks limped through much of 2025, weighed down by a stubborn mix of inflation, weakening demand, and policy uncertainty.

The broad sector may not see a rebound in 2026, but selective opportunities remain for companies that can grow through the cycle rather than merely survive it—whether through differentiated offerings, strong brands, digital engagement, or riding secular consumption trends.

Barron’s highlights three stocks that Wall Street analysts are bullish on heading into the new year.

Dutch Bros

Dutch Bros, a West Coast-based chain for coffee and other cold beverages, has carved out a distinctive niche. The brand leans heavily on drive-throughs and a high-energy, community-driven brand that resonates with younger consumers. The focus on speed and convenience is particularly appealing at a time when consumers want small, affordable indulgences.

Management has been clear about its ambition to accelerate unit growth over the next few years. UBS analyst Dennis Geiger expects store count to increase 15% in 2026 and approach 2,000 by the end of the decade. The new locations are hitting strong sales quickly, suggesting the brand resonates well beyond its Western strongholds.

“We are pleased with new shop economics that improved throughout 2024 and continued in 2025,” wrote TD Cowen analyst Andrew Charles in a recent report. He notes that Dutch Bros is well positioned to gain more share in the coffee-shop market—one of the fastest-growing categories in the restaurant industry.

Traffic—not just pricing—is driving sales at Dutch Bros. Geiger expects the momentum to continue, forecasting a 4% same-store sales growth in 2026 driven by the firm’s loyalty programs, mobile ordering, increased advertising, and the rollout of more food products. Charles is expecting a 5.5% increase in same-store sales next year.

Despite the growth potential, Dutch Bros shares are trading below historical valuations. Geiger has a $85 price target for the stock, suggesting a 37% upside from the stock’s Tuesday close at $62. Charles expects the stock to reach $70 in the next 12 months. The average target among analysts tracked by FactSet sits around $77.

Monster Beverage

As consumers continue to favor functional beverages that promise energy and performance, this drink category has seen steady growth as other beverage segments struggle with slowing volumes. Currently making up only 3% of refreshment beverage volumes, the group still has plenty of room to run.

Compared with rivals like Red Bull and Celsius Holdings, Monster Beverage’s customer base skews more toward male. This means it has potential to win over more female drinkers through new flavors, smaller packages, or targeted marketing, says RBC Capital Markets analyst Nik Modi. The company already has many new products planned next year, including zero-sugar offerings.

International markets have been a major growth driver for Monster, particularly in regions where energy-drink penetration remains relatively low. Modi noted that the firm’s international sales have grown at an annual rate of 13% over the past three years, as the brand gains share in 20 of 25 international markets it tracks. Wall Street expects the momentum to continue in the next five years.

“We believe investors may be underestimating the duration of Monster’s growth curve outside the U.S.,” wrote Modi in a report this month.

Despite pockets of cost pressure and reinvestment plans, Monster’s earnings growth should persevere thanks to its improving supply chain efficiencies, wrote Deutsche Bank’s Steve Powers.

Monster shares have already gained 50% this year to around $77, but analysts think there is more room to run. Modi has a $81 price target for the stock, while Powers recently raised his outlook to $84.

Domino’s Pizza

In the restaurant industry, larger chains will likely outperform as smaller operators close underperforming units, ramp up investments, and shift strategy, according to BTIG’s Peter Saleh. “We expect 2026 to be a year in which restaurant industry and category leaders capture market share, specifically the largest brand picking up market share from their category peers.”

This trend has been in place for some time, with McDonald’s gaining share in quick-service burgers and Domino’s Pizza doing the same in pizza—a dynamic Saleh expects to intensify in 2026. Domino’s, in particular, looks well positioned to accelerate its gains. Over the past decade, the chain has added roughly one percentage point of market share each year, Saleh says.

Rivals in the pizza category are struggling. Pizza Hut owner Yum! Brands recently said it’s exploring a potential sale of the chain. Saleh expects that process to stretch over several quarters, potentially weighing on Pizza Hut’s operations. Another major rival, Papa John’s International, is also preoccupied with a strategic turnaround, including store closures and refranchising efforts.

All this leaves Domino’s with a relatively clear path to keep gaining ground. Saleh is confident that the brand could hit its targets of mid-single digit U.S. retail sales growth in 2026—thanks to its loyalty program, partnership with delivery platforms, menu innovation, and successful promotional campaigns.

Saleh has a price target of $530 for Domino’s shares, suggesting a 26% upside from the stock’s Tuesday close at $422. “If investor confidence in the U.S. same-store sales outlook improves, we expect shares to break out of this two-year slump and climb toward our price target,” he wrote in a recent report.

Write to Evie Liu at evie.liu@barrons.com