Restaurant stocks are stocks of restaurant companies and restaurant chains. They include stocks of fast food companies, grills, casual dining restaurants, and full dining restaurants. With the increasing trend of eating out, restaurant stocks are on an all-time high, and the future looks bright, too.
According to the US Census Bureau, Americans spent more on dining out than groceries in 2019. It is the beginning of a disruptive trend that will work in favor of restaurant companies and restaurant stocks. The already huge restaurant industry is expected to grow even bigger in the times to come.
|YUM||YUM! Brands, Inc.||$120.02||-10.11%||34.2B|
|CMG||Chipotle Mexican Grill, Inc.||$1,584.33||-16.56%||44.0B|
|DRI||Darden Restaurants, Inc.||$125.78||-14.08%||15.6B|
|DPZ||Domino's Pizza, Inc.||$391.34||-27.08%||14.0B|
|SHAK||Shake Shack Inc.||$51.04||-44.65%||2.2B|
|PZZA||Papa John's International, Inc.||$93.89||-18.46%||3.4B|
|CAKE||Cheesecake Factory, Inc.||$29.96||-30.36%||1.6B|
|ARCO||Arcos Dorados Holdings Inc.||$7.85||31.05%||1.7B|
|ARKR||Ark Restaurants Corp.||$20.82||33.80%||74.0M|
|BBQ||BBQ Holdings, Inc.||$11.75||-11.45%||126.4M|
|BH||Biglari Holdings Inc.||$121.42||-26.79%||375.4M|
|BJRI||BJ's Restaurants, Inc.||$23.43||-40.29%||549.5M|
|BLMN||Bloomin' Brands, Inc.||$20.83||-18.51%||1.8B|
|CBRL||Cracker Barrel Old Country Store, Inc.||$97.18||-27.00%||2.2B|
|CHUY||Chuy's Holdings, Inc.||$23.20||-26.49%||439.4M|
|DIN||Dine Brands Global, Inc.||$72.05||-5.87%||1.2B|
|EAT||Brinker International, Inc.||$28.31||-46.57%||1.2B|
|FAT||FAT Brands Inc.||$8.90||-8.06%||134.6M|
|FRGI||Fiesta Restaurant Group, Inc.||$8.18||-37.75%||212.0M|
|GTIM||Good Times Restaurants Inc.||$3.45||-14.60%||43.0M|
|JACK||Jack in the Box Inc.||$73.81||-28.97%||1.6B|
|JAX||J. Alexander's Holdings, Inc.||$0.03||-62.50%||4.0M|
|KRUS||Kura Sushi USA, Inc.||$84.53||82.77%||823.4M|
|LOCO||El Pollo Loco Holdings, Inc.||$10.04||-44.71%||369.0M|
|NATH||Nathan's Famous, Inc.||$54.34||-14.67%||221.9M|
|NDLS||Noodles & Company||$4.96||-60.76%||226.7M|
|PFGC||Performance Food Group Company||$51.38||20.10%||8.0B|
|PLAY||Dave & Buster's Entertainment, Inc.||$39.58||22.27%||1.9B|
|QSR||Restaurant Brands International Inc.||$59.09||-9.51%||26.7B|
|RAVE||RAVE Restaurant Group, Inc.||$1.38||7.81%||24.8M|
|RICK||RCI Hospitality Holdings, Inc.||$59.84||-3.11%||555.9M|
|RRGB||Red Robin Gourmet Burgers, Inc.||$9.48||-62.87%||149.7M|
|RUTH||Ruth's Hospitality Group, Inc.||$18.09||-7.52%||620.9M|
|STKS||The ONE Group Hospitality, Inc.||$8.83||-2.65%||286.5M|
|TACO||Del Taco Restaurants, Inc.||#N/A||#N/A||#N/A|
|TAST||Carrols Restaurant Group, Inc.||$2.42||-49.05%||128.9M|
|TXRH||Texas Roadhouse, Inc.||$89.67||0.73%||6.1B|
|WEN||The Wendy's Company||$21.28||-4.79%||4.6B|
|WTRH||Waitr Holdings Inc.||$0.43||-74.71%||67.7M|
|YUMC||Yum China Holdings, Inc.||$49.15||-21.32%||20.6B|
Factors to Consider Before Investing in Restaurant Stocks
It is significant for investors to note that despite the high demand and pace of growth, restaurant business and restaurant stocks are a risky affair. Many of the newly launched chains do not survive due to fierce competition and low-profit margins.
Therefore, investors must assess the inherent financial health of restaurant companies before investing in their stocks. You must analyze the fundamentals, including operating profit margin, dividend yield, same-store sales, sales growth, and market capitalization before you set to invest in restaurant stocks.
Moreover, the performance of restaurants and restaurant stocks is dependent on wide economic trends. During difficult times, restaurant sales also plummeted due to high unemployment, low wages, and less disposable income.
Restaurant stocks tend to perform best when the economy is flourishing. When the economy is struggling (or in recession), restaurant stocks don’t perform as well, as consumers tend to forego restaurant visits to save money.
Supply chain factors may impact restaurant stocks as well. For example, if the cost of beef rises, restaurants who use beef will incur higher costs, which could either lower margins or lower sales as the expenses are passed on to the consumer.
Which Restaurant Stocks Should I Buy?
The stocks of many fast-food chains, restaurant franchise companies, and other restaurant companies trade on the US stock exchanges. The list of best restaurant stocks compiled by us will help you make an informed decision. The best restaurant stocks include both well-established global restaurants and newly launched chains.
Investors can look at the established global giants for long-term growth, sustainability, and stable financial returns. At the same time, some recently launched businesses can also be promising and disruptive and end up generating strong returns despite being new and risky.