Sugar producers argue that the price supports for sugar helps support more than 140,000 U.S. jobs in 18 states, and it backed up its arguments with more than $5 million in contributions to candidates for national office in the last election.

The food and beverage industry argues that the government support for U.S. sugar growers forces food and drink makers to pay more for sugar, a cost that is then passed on to consumers. Industry lobbyists kicked in more than $8.3 million in contributions to candidates, political parties, and other groups according to a report in The Wall Street Journal.

We noted in early April that the U.S. Department of Agriculture will decide by the first of July whether or not it will purchase up to 400,000 tons of surplus sugar which it will then sell at a discount to ethanol producers. The cost to taxpayers is expected to be around $80 million.

U.S. food and drink makers — and U.S. consumers — pay about 50% more for sugar than the world price according to the WSJ.

In a new report, Deutsche Bank A.G (NYSE: DB) points out that despite generally sluggish same-store sales and traffic, especially in the first quarter, as well as limited unit expansion potential for many brands, they believe that the cash flow generation of these businesses has been a key support for stock prices, helping offset low organic growth for many companies. Their research screened for stocks that possess the best combination of stable, cash-rich businesses and relatively low leverage.

Here are their top restaurant stocks to buy now.

Panera Bread Co. (NASDAQ: PNRA) is the top stock to buy at Deutsche Bank. More than a bakery, the popular eatery has become a go-to destination for lunch and dinner, which is raising the average check amount. Deutsche Bank has a $200 price target, which was just raised from $190. The Thomson/First Call estimate is also $200.

McDonald’s Corp. (NYSE: MCD) is a mega-cap blue chip on the list. The iconic fast-food restaurant recently has made menu changes to appeal to more health conscience customers. Deutsche Bank has a $110 price target, while the consensus is $108. Investors are also paid a tasty 3.10% dividend.

Buffalo Wild Wings Inc. (NASDAQ: BWLD) sure seems packed every Saturday and Sunday during the football season. Using the strip-mall location theme has worked big and help to drive earnings. Deutsche Bank has placed a $106 target on the stock. The consensus estimate is $100.

Del Frisco’s Restaurant Group Inc. (NASDAQ: DFRG) is a stock to buy for investors that want to own a high-dollar steakhouse. The company operates approximately 34 restaurants, including 10 Del Frisco’s Double Eagle Steak House restaurants, 19 Sullivan’s Steakhouse restaurants, and five Del Frisco’s Grille restaurants in 19 states. Deutsche Bank’s $20 price target is in line with the consensus estimate.

Starbucks Corp. (NASDAQ: SBUX) rounds out the top five restaurant stock to buy. Starbucks recently announced plans to deliver the Keurig system and Starbucks-branded K-Cups to its strongest and fastest growing international markets such as China, Mexico and India, leveraging Starbucks’ popularity in those markets. Deutsche Bank has a $66 price target for the industry giant, which is the same as the consensus target. Investors receive a 1.30% dividend.

We have cautioned investors about going “all-in” on stocks at this level of the markets. It may make sense when investing in any of the Deutsche Bank restaurant stocks to scale in money. Another strategy would be to buy a half position now, and wait for a pullback to add the rest.

Zacks Investment Research called Monster the dubious “Bear of the Day” and gave it a Strong Sell rating on its scale and a long-term Underperform rating. Zacks is concerned with the regulatory and legal smackdown now that the U.S. Food and Drug Administration and various attorneys general and lawyers are looking into the safety of the so-called energy drinks. Zacks pointed out the earnings erosion taking place, as well as the lower revisions for future expectations. Zacks even said, “While the global energy drinks market continues to grow, rising health risk concerns and resulting lawsuits will continue to affect the stock.”

And now for the positive call. Morgan Stanley initiated coverage on Tuesday with an Overweight rating, and it assigned a $65 share price target on the stock. This is where a duel really arises. Morgan Stanley believes that the pullback has created a compelling entry level, based on historic valuations and its underperformance against peers. The firm even expects that recent earnings misses will reverse in the second half of 2013, now that expectations and assumptions have been set much lower. Morgan Stanley even said its growth is not properly priced due to the concerns.

So far it is Morgan Stanley winning the duel for trader attention in Monster Beverage. Shares are up 3.5% at $55.71, against a 52-week range of $39.99 to $79.00. The consensus price target is $58.14 and the median target price is $59.00.

There are two things we also advise traders and would-be investors to consider in the case of Monster. The first is that Monster is still worth more than $9.2 billion and trades at more than 26 times the expected Thomson Reuters consensus earnings estimate for 2013. The second issue is that the short interest of 6.16 million is now the highest reading nominally, and in the 3.76 days to cover.

Monster’s first-quarter report showed that net income was down 17% to $63.5 million, or $0.37 in earnings per share. The company attributed that to legal expenses ($3 million) and distribution costs ($8.3 million), and even blamed an unfavorable impact from currency rates ($4.7 million). What is amazing is that revenue still managed to grow despite all the negative press and coverage surrounding the so-called energy drinks. Sales were up more than 6% from a year ago to $484.2 million.

The company’s total revenue increased 6.5% to $484.2 million from $454.6 million a year ago. The consensus earnings estimates called for $0.46 in earnings per share on sales of about $502 million.

What is interesting is that management is still talking about growth and new launches internationally. Despite all the bad press, Monster has maintained that its drinks are safe to consume. Maybe the bad press about safety does not matter elsewhere if growth is still expected. Analysts have projected sales growth of more than 10% for both 2013 and 2014.

Monster’s share price was down about 14% around $49 on Wednesday night, after closing at $56.97. Its 52-week trading range is $39.99 to $79.00, and its market cap as of yesterday’s close was actually $9.4 billion. Shares are indicated around $50 in early Thursday trading.

Be advised that the mid-April short interest was up at 6.16 million shares with a 2.7 days-to-cover ratio. That was the highest short interest, and the second highest days-to-cover ratio, in a year.

The Xinhua news agency reports on China’s inflation in April:

China’s consumer inflation slightly accelerated in April, but still within a mild range that leaves room for policymakers to fine-tune policies to support the tepid economic recovery, official data showed Thursday.

China’s consumer price index (CPI), a main gauge of inflation, grew 2.4 percent year on year in April, up from 2.1 percent in March but well below the year’s control target of 3.5 percent, according to the National Bureau of Statistics (NBS).

The rise is largely in line with the market forecast of around 2.3 percent.

The NBS attributed the gain mainly to an unusual increase in vegetable prices during that month as low temperatures and scarce rainfalls disrupted supplies.

In April, food prices, which account for nearly one-third of weighting in China’s CPI, increased 4 percent year on year, with the prices of vegetables rising 5.9 percent, NBS data showed.

On a monthly basis, consumer prices in April edged up 0.2 percent.

Like competitor Yum! Brands Inc.’s (NYSE: YUM) KFC stores, sales in China were hit by the onset of a new strain of bird flu and results were softer in both Japan and Australia. In Europe, sales declines in Germany and France more than offset gains in Russia and the United Kingdom.

The company’s CEO said:

As we begin the second quarter against the backdrop of a persistently challenging macro environment, the McDonald’s System is aligned around executing our long-term strategies to drive sustained, profitable growth.

It might be time for McDonald’s and CEO Don Thompson to rethink the company’s long-term strategies, which comprise enhancing store menus and creating a better customer experience. Every fast-food chain now has a low-priced value menu and simply extending McDonald’s value menu to include a flavor-of-the-month may help in the short run, but it is not a long-term strategy.

It is the same with creating a better experience for customers, which means remodeling and updating the company’s stores. No doubt that helps sales, but how long the effect lasts is arguable.

Shares of McDonald’s are down about 0.3% in premarket trading this morning, at $102.00 in a 52-week range of $83.31 to $103.70.

The news today showed that corn’s drop has been tied to dry weather allowing an accelerated planting to boost supply. Bloomberg even referred to a report from MDA showing a huge boost to the corn inventories in 2013. Corn futures were down 2.8% to $6.425 per bushel on above-normal trading this morning at the CBOT/CME in July, September, and December trading. The move is even down more than wheat futures being down 2% and soybean futures being down almost 1%.

Food inflation for feedstocks has been a serious thorn in the side of producers. These producers have had to pay for higher input costs to get chicken, hogs, and beef to market. Tyson Foods, Inc. (NYSE: TSN) is down over 4%, but that is because of a poor earnings report rather than due to a lower feedstocks price matrix on Monday.

Elsewhere, meat and prepared food companies are lower in sympathy with the market and with Tyson’s weak earnings report. Pilgrim’s Pride Corporation (NASDAQ: PPC) is up Hormel Foods Corporation (NYSE: HRL) is down 1.4% at $41.1 and Smithfield Foods, Inc. (NYSE: SFD) is down 0.9% at $25.40.

Teucrium Corn (NYSE: CORN) is down 3.8% at $40.05 against a 52-week range of $35.23 to $52.71.

Interestingly enough, shares of Pacific Ethanol, Inc. (NASDAQ: PEIX) are up over 2.5% but the stock is only at $0.2885 now that it is a small cap sub-$1 stock.

According to a report in The Wall Street Journal, Yum! Brands has said that it does not purchase the brand of lamb being investigated in Shanghai. “After thorough examination, we’ve concluded that the merchant is not one of Little Sheep’s suppliers and does not match any of our purchasing records.”

Unfortunately for Yum! Brands, the company has made so many missteps in China in the past six months that no one is likely to believe that. Late last year the company’s KFC stores in China were hit with a tainted chicken charge, and just as that was drawing to a conclusion, a new strain of bird flu hit China.

In a story at yicai.com, an official with the investigation said (translation by Google Translate):

Little Sheep also part of the franchise, do not rule out Little Sheep franchise management is not strict enough …

Yum! Brands’ Chinese same-store sales fell by 20% in the first quarter, and oits perating profit in the country fell 41%. Yum! Brands has staked a lot on its Chinese operations, and the company has failed to execute. Of course, signing up as a sponsor of the Kentucky Derby was intended to sell Yum! Brands’ stock, not its fried chicken, and certainly not its lamb hot pot in China.

Shares of Yum! Brands are down about 2.3% in premarket trading this morning at $67.34 in a 52-week range of $59.68 to $74.75.

In a recent survey of U.S. spirits wholesalers, analysts at UBS A.G. (NYSE: UBS) found out that the wholesalers are positive on the U.S. market and volume growth for their products, but not nearly as optimistic as the spirits companies themselves. Wholesalers may be slightly more cautious on the market outlook as (1) consumer confidence indicators have been very volatile, and (2) wholesalers’ confidence outlook may be more focused on volume than value growth, and volume growth has moderated due to higher industry focus on pricing.

Despite any increase in pricing moderating volume growth, U.S and international sales continue to be strong. Against a solid backdrop of growth, the team at UBS has a list of stocks to buy that just may add some sizzle to a portfolio.

Beam Inc. (NYSE: BEAM) reported earnings today, and the news was good. The bourbon maker beat earnings estimates by $0.10 per share and reaffirmed guidance for the rest of the year. The Thomson/First Call estimate for the stock is $64.

Anheuser-Busch InBev S.A./N.V. (NYSE: BUD) recently added Mexican brewer Grupo Modelo to its portfolio of products and has commenced a cash tender for the balance of the shares its does not already own. The consensus price target for the stock is $110. With shares at about $95, does this make Budweiser the King of Beers for analysts?

Constellation Brands Inc. (NYSE: STZ) produces and markets beverages around the world. The company recently announced a $1.55 billion dollar debt offering to help finance its purchase of Crown Imports, which will make it the sole importer of the popular Mexican beer Corona. The consensus price target for the stock is $54.

Brown-Forman Corp. (NYSE: BF-B) is another UBS stock to buy. The company provides wines, ready-to-drink products, vodka, whiskey, tequila, liqueur and other distilled spirits. The consensus for the stock is $74.

Diageo PLC (NYSE: DEO) has one of the largest portfolios of well-known spirit brands in the world. Its shares are trading near a 52-week high, and the company has posted solid earnings growth. The consensus estimate for the stock is $134.17.

Boston Beer Co. Inc. (NYSE: SAM) sells almost 50 different beers under the popular Sam Adams brand. The consensus price target for the stock is $138. This number is almost $30 below where the stock is currently trading.

Molson Coors Brewing Co. (NYSE: TAP) has been a prime benefactor in the growth of beer consumption in the past year. The consensus for the stock is $47.

Though consumers can be a fickle bunch and tastes often change on a whim, brand preference for the spirit companies is usually their biggest ally. While volumes on certain products rise and fall as demographics change, one thing is for sure. The worldwide market for alcoholic beverages is not going away anytime soon.

On a GAAP basis, Herbalife’s EPS totaled $1.10, which excludes a $0.10 per share impact related the devaluation of Venezuela’s currency and a $0.07 negative impact related to the cost of “responding to attacks on the Company’s business model.”

Those attacks, of course, were launched last December by William Ackman of Pershing Square Capital Management, and pit Ackman against activist investor Carl Icahn, who has amassed a healthy long position in Herbalife.

The company’s CEO said:

We continue to deliver record results in sales and profitability as our independent distributors successfully execute numerous growth strategies that enable deeper market penetration, developing customers using our weight management and targeted nutrition products every day.

The important thing about Herbalife’s earnings are the reactions by the short seller (Ackman) and Icahn and the rest of the long investors. Herbalife’s numbers almost don’t matter, as we noted earlier today in our preview of the company’s earnings.

The outcome is almost entirely in the hands of federal regulators. If one or another federal agency opens an investigation into Ackman’s charges that Herbalife is a pyramid scheme, that could effectively destroy the stock price. If no investigation is forthcoming, Herbalife presumably can continue operating as it now does.

Herbalife shares closed at $38.75 today against a prior 52-week trading range of $24.24 to $72.99. Shares are unchanged in after-hours trading. Thomson Reuters had a consensus analyst price target of around $58.10 before today’s report. That target price has fallen $5 a share since Herbalife reported fourth quarter earnings.