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Image Credit: Bloomberg Quint

KFC, McDonald's Are Goldman Sachs Top Picks As Demand Set To Pick Up In 2026

  • The quick service restaurant sector may see a slowdown in demand in the fourth quarter of fiscal 2025, but recovery is expected in the first half of fiscal 2026, according to Goldman Sachs.
  • Sapphire Foods India Ltd. and Devyani International Ltd.— both KFC franchisees — are among the brokerage's top picks due to long-term growth potential for KFC in India and limited competition in the fried chicken segment.
  • Goldman Sachs expects that most QSR companies will experience a slowdown in same-store sales growth in the fourth quarter of FY25.
  • The recently announced income tax cuts will benefit QSR companies by increasing disposable incomes and accelerating the recovery of the sector, according to Goldman Sachs.

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