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.||$124.38||-4.99%||34.9B|
|CMG||Chipotle Mexican Grill, Inc.||$2,226.25||41.74%||61.1B|
|DRI||Darden Restaurants, Inc.||$160.04||11.50%||19.3B|
|DPZ||Domino's Pizza, Inc.||$394.05||3.35%||13.7B|
|SHAK||Shake Shack Inc.||$61.53||23.78%||2.6B|
|PZZA||Papa John's International, Inc.||$69.10||-16.16%||2.3B|
|CAKE||Cheesecake Factory, Inc.||$32.25||0.72%||1.6B|
|ARCO||Arcos Dorados Holdings Inc.||$12.08||62.15%||2.6B|
|ARKR||Ark Restaurants Corp.||$15.45||-19.36%||55.7M|
|BBQ||BBQ Holdings, Inc.||$6.03||109.38%||164.7M|
|BH||Biglari Holdings Inc.||$148.48||4.69%||459.0M|
|BJRI||BJ's Restaurants, Inc.||$31.08||2.78%||722.2M|
|BLMN||Bloomin' Brands, Inc.||$23.77||14.89%||2.1B|
|CBRL||Cracker Barrel Old Country Store, Inc.||$70.58||-26.84%||1.6B|
|CHUY||Chuy's Holdings, Inc.||$36.41||20.05%||631.8M|
|DIN||Dine Brands Global, Inc.||$45.61||-34.85%||704.4M|
|EAT||Brinker International, Inc.||$37.82||16.15%||1.7B|
|FAT||FAT Brands Inc.||$5.88||-8.13%||98.7M|
|FRGI||Fiesta Restaurant Group, Inc.||#N/A||#N/A||#N/A|
|GTIM||Good Times Restaurants Inc.||$2.61||8.30%||30.1M|
|JACK||Jack in the Box Inc.||$76.77||10.10%||1.5B|
|JAX||J. Alexander's Holdings, Inc.||$0.02||-50.00%||2.5M|
|KRUS||Kura Sushi USA, Inc.||$61.13||-4.39%||681.5M|
|LOCO||El Pollo Loco Holdings, Inc.||$8.71||-18.52%||287.0M|
|NATH||Nathan's Famous, Inc.||$67.75||-1.80%||276.4M|
|NDLS||Noodles & Company||$3.15||-42.10%||141.5M|
|PFGC||Performance Food Group Company||$66.50||10.36%||10.3B|
|PLAY||Dave & Buster's Entertainment, Inc.||$41.92||12.57%||1.8B|
|QSR||Restaurant Brands International Inc.||$73.01||9.69%||22.8B|
|RAVE||RAVE Restaurant Group, Inc.||$2.27||39.26%||33.0M|
|RICK||RCI Hospitality Holdings, Inc.||$60.62||-30.37%||569.7M|
|RRGB||Red Robin Gourmet Burgers, Inc.||$9.73||26.53%||150.6M|
|RUTH||Ruth's Hospitality Group, Inc.||#N/A||#N/A||#N/A|
|STKS||The ONE Group Hospitality, Inc.||$5.00||-22.00%||156.4M|
|TACO||Del Taco Restaurants, Inc.||#N/A||#N/A||#N/A|
|TAST||Carrols Restaurant Group, Inc.||$7.57||388.39%||412.5M|
|TXRH||Texas Roadhouse, Inc.||$113.19||17.15%||7.6B|
|WEN||The Wendy's Company||$19.33||-16.36%||4.0B|
|WTRH||Waitr Holdings Inc.||#N/A||#N/A||#N/A|
|YUMC||Yum China Holdings, Inc.||$40.87||-26.32%||16.9B|
Examples of Restaurant Stocks
The restaurant industry has been hit hard by the COVID-19 pandemic, with many businesses shutting down or significantly reducing their operations. However, some restaurant stocks have managed to weather the storm and even thrive. Here are some of the best restaurant stocks to consider investing in:
- McDonald’s (MCD) – McDonald’s is one of the world’s most recognizable fast food chains and has a long history of consistent growth. The company has been able to adapt to the pandemic by shifting to drive-thru and delivery options, which has helped it maintain strong sales.
- Starbucks (SBUX) – Starbucks is another well-known brand that has managed to perform well during the pandemic. The company has a strong digital presence and a loyal customer base, which has helped it continue to grow despite the challenges posed by the pandemic.
- Yum! Brands (YUM) – Yum! Brands is the parent company of popular fast food chains such as KFC, Taco Bell, and Pizza Hut. The company has been able to maintain strong sales and growth despite the pandemic, thanks to its diverse portfolio of brands and its ability to adapt to changing consumer preferences.
- Chipotle Mexican Grill (CMG) – Chipotle has been one of the best-performing restaurant stocks in recent years. The company has a strong focus on sustainable sourcing and healthy options, which has helped it attract a loyal customer base. Chipotle’s digital capabilities also helped it to drive sales during the pandemic.
- Darden Restaurants (DRI) – Darden Restaurants is the owner of several popular restaurant chains, including Olive Garden, LongHorn Steakhouse, and Cheddar’s Scratch Kitchen. The company has been able to maintain strong sales and growth despite the pandemic, thanks to its diverse portfolio of brands and its ability to adapt to changing consumer preferences.
About the Restaurant Industry
The restaurant industry is a vital part of the global economy, providing jobs and income for millions of people. The industry includes a wide variety of businesses, from fast food chains to fine dining establishments, and everything in between. The industry can be further broken down into several sub-sectors, such as full-service restaurants, quick-service restaurants, and coffee shops.
The restaurant industry has been hit hard by the COVID-19 pandemic, with many businesses shutting down or significantly reducing their operations. This has resulted in a decline in sales and revenue for many companies, as well as widespread job losses. However, some restaurants have been able to adapt to the new normal by shifting to delivery and takeout options, which has helped them maintain sales.
The industry is highly competitive, with a large number of players, both large and small. This has led to intense price competition and pressure on profit margins. However, for successful restaurants, the potential for growth and profitability is high.
Here are some facts about the Restaurant Industry:
- The global restaurant industry is worth trillions of dollars. In 2019, the global restaurant industry was valued at $3.9 trillion and is projected to reach $5.5 trillion by 2030.
- The restaurant industry is one of the largest employers in the world. It is estimated that the industry employs around 75 million people globally.
- The restaurant industry is highly fragmented. There are over one million restaurants in the United States alone, with the majority of them being small, independent businesses.
- The United States has the highest number of restaurants per capita in the world. There are approximately 660,755 restaurants in the United States, which is more than any other country.
- The restaurant industry has a significant impact on the economy. The industry contributes to 4% of the US GDP, and 8% of total employment.
- Restaurants are increasingly turning to technology to improve their operations. Many restaurants now use digital ordering systems, mobile payments, and other digital tools to increase efficiency and improve the customer experience.
- The industry is facing a labor shortage. The restaurant industry is facing a shortage of skilled labor, especially in the areas of cooking and management, which is being exacerbated by the pandemic.
- The industry is becoming more sustainable. Many restaurants are now sourcing ingredients locally and using environmentally friendly practices, such as reducing food waste, to appeal to consumers who are more conscious of the environment.
- The restaurant industry is expected to continue to grow in the future. As the global population continues to grow, so too will the demand for restaurants. Additionally, the rise of food delivery services and the increasing popularity of plant-based options are also expected to drive growth in the industry.
The industry is also facing a number of trends and challenges, such as the growing popularity of plant-based options, the rise of food delivery services, and the increasing demand for sustainable and locally sourced ingredients. Additionally, the industry is also being impacted by the changing consumer preferences, such as the rise of digital ordering and the preference for convenience over dining out.
Overall, the restaurant industry continues to be a vital part of the global economy, providing jobs and income for millions of people. Despite the challenges posed by the pandemic, the industry is expected to recover and continue to grow in the future.
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.