Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. That is reflected in the top stocks of the restaurant industry below. There is, however, a huge spread among restaurant stocks, even bigger than the shares of airlines. The small roadside store the McDonald brothers started in 1948 -- and later taken over by longtime CEO Ray Kroc -- … As one of the most successful restaurant stocks ever, who are Chipotle's top competitors? Investors should keep a close eye on Chipotle Mexican Grill , Bloomin' Brands (NASDAQ:BLMN), and Restaurant Brands International this … This copy is for your personal, non-commercial use only. The restaurant stocks included in this ETF are Starbucks and Papa John's. Accessed Dec. 10, 2020. The restaurant industry ranges from local mom-and-pop eateries to national and international chains. YCharts. The fresh-fast burrito giant already maintained a loyal base of customers, and … Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. 1 thing to consider before opening a restaurant." The following is a list of some of the restaurant stocks highlighted by three pros as benefiting from a very supportive environment over the coming months. (WEN) success with breakfast, 2020 hasn’t been all bad for restaurants. Best-in-Class Portfolio Monitoring. Texas Roadhouse The restaurant industry, represented by the Dow Jones US Restaurants & Bars Index, has underperformed the broader market. FAAMG is an abbreviation coined by Goldman Sachs for five of the top-performing tech stocks in the market, Facebook, Amazon, Apple, Microsoft, and Google. The Invesco Dynamic Leisure and Entertainment ETF (NYSEARCA: PEJ) is a more than adequate replacement for a dedicated restaurant ETF. The index has posted a 1-year trailing total return of 13.4% compared with the Russell 1000's total return of 22.2% as of December 8. Restaurants with successful delivery or takeout operations, however, have done particularly well during this period. We weeded out any companies trading at more than 30 times 2021 earnings-per-share estimates. Panera Bread, in particular, is noteworthy for being the best-performing restaurant stock on Wall Street during its 20-year run as a public company. 529s. By the time it was acquired by JAB in 2017, Panera, which also owns Au Bon Pain, had provided investors with an 86-fold return. The fund holds 30 stocks, 11 of which are restaurant fare. Accessed Dec. 10, 2020. (BLMN) and Jack in the Box (JACK) just made the cut, as both are valued at less than $2 billion, but they are also the only two on the list trading at less than 20 times next year’s earnings. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated. Write to Teresa Rivas at teresa.rivas@barrons.com. Accessed Dec. 10, 2020. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. From Shake Shack Inc. "Shake Shack Announces Third Quarter 2020 Financial Results." Analysts see Bloomin’ Brands’ same-store sales rising just over 19% in 2021, and project a 2.5% gain for Jack. Accessed Dec. 10, 2020. —leaving us with eight. These are the restaurant stocks that had the highest total return over the last 12 months. The failure rate of restaurants may rise due to the COVID-19 pandemic. (If we had looked for positive comparable sales in just the latest quarter for the group, that would have left just one company— Some of the best-known publicly traded restaurants include McDonald's Corp. (MCD) and Chipotle Mexican Grill, Inc. (CMG). Cracker Barrel Old Country Store Inc. "Cracker Barrel Reports First Quarter Fiscal 2021 Results." Stock Ideas and Recommendations. A franchisor sells the right to use its brand and expertise to one who will open another branch of the business to sell the same products or services. We also reference original research from other reputable publishers where appropriate. Yet consensus estimates call for comps to be up more than 9% next year. We've detected you are on Internet Explorer. Traffic at all three of its three banner brands—KFC, Pizza Hut, and Taco Bell—was down. (CMG) seemingly relentless rise, and even SBUX, MCD, and YUMC top the list of the 10 biggest restaurant companies. For the best Barrons.com experience, please update to a modern browser. 2 Top Restaurant Stocks to Buy in December One is a fast-food leader, the other a family-style dining favorite, but both should recover well from the pandemic. Chuy’s Holdings (CHUY) Both stocks rose after reporting their most recent quarter, with bottom-line beats. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Dunkin’ Brands Group (ticker: WING) ability to double earnings, to Wingstop’s Grubhub In the second half, we … (DNKN) and McDonald’s, the largest restaurant by market cap, … Chipotle (NYSE: CMG) is the first of our restaurant stocks to buy. ) (LOCO) and Bloomin’ Brands Wendy’s Data support the restaurant stock these. Roche, Regeneron Team Up on Antibody Treatment, breakfast has been the slowest meal to recover, missed analysts’ expectations in its most recent quarter, recent earnings report was better than feared. Here is Barclays' list of some of the best restaurant stocks to buy:-- Dunkin' Brands Group -- Bloomin' Brands -- Chipotle Mexican Grill -- McDonald's Corp. -- Wendy's Co. -- Darden Restaurants -- Texas Roadhouse . The restaurant industry is a tough nut to crack. The stock has been beaten and bruised over the past few months thanks to product delays, but semiconductor giant Intel remains one of the best blue-chip stocks to … Chipotle Mexican Grill’s Accessed Dec. 10, 2020. That said, its bottom-line results missed analysts’ expectations in its most recent quarter; Cracker Barrel had the same problem. Best Dining in San Mateo, California: See 7,939 Tripadvisor traveler reviews of 450 San Mateo restaurants and search by cuisine, price, location, and more. 7 Best Restaurant Stocks to Bite Into Today Growth stocks and restaurant stocks have been hot -- so investors might want to try both By Vince Martin , InvestorPlace … Many restaurant chains in the U.S. are traded publicly either on the Nasdaq Stock Market or the New York Stock Exchange. (MCD) both trade around 25 times 2021 earnings. Restaurant stocks are trading a multi-year lows because of the lost business in the near term, setting steep discounts on their valuation. 9 of the Best Restaurant Stocks to Buy in 2020 Wayne Duggan | Dec. 9, 2019 These nine restaurant stocks have the highest projected 2020 total returns. The Complete List of Restaurant Stocks Trading on the NASDAQ as of Dec 11, 2020 are listed below: Note: If you are looking for Restaurant Stocks trading on the NYSE click here. Yum delivered an earnings beat last month, but that was largely related to its Then we took out the two companies with market caps below $1 billion— Yum Brands Texas Roadhouse and Starbucks are the most expensive stocks, but are among the top companies for expected 2021 comp growth, at 17.9% and 20.8%. What Quarters (Q1, Q2, Q3, and Q4) Tell Us, The No. (TXRH). Domino’s is up more than twentyfold in the past 10 years. Financial Advisors. All statistics below are as of December 9. Get daily stock ideas top-performing Wall Street analysts. El Pollo Loco Holdings Inc. "Exclusive Partnership with Postmates as part of ‘However Long is Necessary’ Campaign." Domino’s Pizza (DPZ) is the best performing restaurant stock in … CNBC. As one of the most successful restaurant stocks ever, who are Chipotle's top competitors? We used FactSet to screen for U.S. restaurants that have reported positive same-store sales of more than 1% in their latest fiscal year, and those that analysts expect to deliver same-store sales growth in 2021 as well. A quarter is a three-month period on a company's financial calendar that acts as a basis for the reporting of earnings and the paying of dividends. Here are the top 3 restaurant stocks with best value, fastest growth, and most momentum. You can learn more about the standards we follow in producing accurate, unbiased content in our. https://www.barrons.com/articles/8-restaurant-stocks-that-are-worth-the-risk-51597831201. Latest Stories. Starbucks The offers that appear in this table are from partnerships from which Investopedia receives compensation. The restaurant sector includes companies that offer full-service restaurants, fast food restaurants, cafeterias and snack bars. Plus, only a handful of restaurant stocks-- … Domino’s and Wingstop have been the best-performing stocks in the group this year with a gain of 25%. The golden arches is one of the most recognizable logos in the world. Summary. McDonald’s These two companies made up 5.4% and 2.2% of the ETF, respectively, as of … (CBRL) and Best Dining in Stock Island, Florida Keys: See 4,393 Tripadvisor traveler reviews of 5 Stock Island restaurants and search by cuisine, price, location, and more. Starbucks, like Dunkin’, has struggled with the sluggish recovery in breakfast, but the company’s most recent earnings report was better than feared. 11 Best Value Stocks for This Overpriced Market The new bull market has sent stocks back to nosebleed levels. This copy is for your personal, non-commercial use only. 6 Great Restaurant Stocks My two longtime favorites are Chipotle and Starbucks, which have franchises built for Americans' changing eating habits. Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. That left us with 10 names. These are the restaurant stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Consumer tastes can be fickle, competition is fierce, and profit margins are low. Stock Market News. But in an industry so starved for growth during the shutdown, many of the standouts have already garnered plenty of attention—and their stock valuations show it. Moreover, many companies have yanked their guidance. Analysts expect McDonald’s same-store sales to rise 13.4%. (GRUB) stake. Boeing Stock Soars, Alibaba Stock Falls ... 7 Best Value Stocks to Buy in 2020. (SBUX) as the highest of the group. The top 10 restaurant companies in the world are primarily chain operations with a major international presence. These are the restaurant stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. "YCharts." Investopedia requires writers to use primary sources to support their work. (Jack was one of the early fast-food winners when the U.S. first started to reopen this spring.) Investing 101. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. For all the turmoil that the Covid-19 pandemic has caused in the restaurant sector, there are still a number of success stories. Restaurant Stock #1: Dine Brands Global (DIN) Dine Brands Global (Dine Equity until early 2018) is a casual and family dining restaurants company that owns and franchises restaurants. Jack’s sales were better than expected as well. Restaurant stocks have been whipsawed by poor earnings, Covid-19 warnings from health experts, and hopes about reopenings and vaccine progress. (YUM) are the next two cheapest stocks with similar same-store sales expectations, and both saw declines after their most recent earnings results. Many restaurants remain closed to service while millions of consumers confined at home are reluctant to dine out at the ones that are open. Cracker Barrel Old Country Store (CBRL) and McDonald’s (MCD) both trade around 25 times 2021 earnings. Jack in the Box. Yet Cracker Barrel’s expected increase in comps in 2021, at 20.8%, is tied with El Pollo Loco Yet the restaurants that have held up best in the past year, and are expected to keep attracting diners, may be in for less pain than others. Learn about the history of Black Friday, from its evolution to what it means for shoppers and retailers. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders. In the first half of this story we look at the top 3 hotel stocks with: the best value, the fastest growth, and the most momentum. Bloomin' Brands These three restaurant stocks are significantly undervalued compared with their cash flows. Commercial real estate (CRE) is property, used solely for business purposes and often leased to tenants for that purpose. This includes full-service restaurants, fast-food restaurants, or their parent companies. McDonald’s, the largest restaurant by market cap, was the best performer in the group in terms of same-store sales in its latest fiscal year, and its stock saw the second-highest 2020 gains of the group, behind only InvestorPlace - Stock Market News, Stock Advice & Trading Tips. "The No. Texas Roadhouse stock gained after reporting a better-than-expected second-quarter earlier this month. Yahoo News. While breakfast has been the slowest meal to recover from pandemic-related dining changes, Dunkin’s drive-throughs have at least helped offset the pain, and analysts are looking for comps to climb nearly 9% next year. These include white papers, government data, original reporting, and interviews with industry experts. These 11 picks represent some of the best remaining value stocks on offer. Buying them cheaply helps further mitigate the risk. Conversely, the restaurant sector has stocks trading at steep discounts in light of the shutdown.When this is lifted, be it in a few or several weeks, investors have seven restaurant stocks … The industry is notoriously difficult for business owners, with about 60% of new restaurants failing within their first year. One reason for this is that restaurant spending tends to be heavily discretionary, fluctuating dramatically with the broader economy. Its brands include Applebee’s and IHOP. The best restaurant stocks of 2019. Contact U.S. News Best Stocks. The price-to-earnings ratio (P/E ratio) is defined as a ratio for valuing a company that measures its current share price relative to its per-share earnings. Francfort says Chipotle is one of the best high-growth restaurant options for those with a long-term investing strategy. Chipotle Mexican Grill Inc. "Chipotle To Open Its First Digital-Only Restaurant." Accessed Dec. 10, 2020. Cracker Barrel Old Country Store Of course, analyst estimates are always subject to change, and the outlook for restaurants remains especially murky, given that outbreaks of Covid-19 have led to reopening rollbacks, increased dining restrictions, and a general hesitance to eat out for some. 3 Stocks to Play a Coronavirus Recovery A cruise line, a discount retail mall operator, and a restaurant chain might not be at their best right now, but … Best Value Restaurant Stocks : Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio: Jack in the Box Inc. 89.46: 2.0: 23.0: El Pollo Loco Holdings … Jack in the Box Inc. "Jack in the Box Inc. Reports Fourth Quarter FY 2020 Earnings; Declares Quarterly Cash Dividend." Best fundamental research: most rigorous long & short ideas. Accessed Dec. 10, 2020. Mark Reeth Nov. 11, 2020. An error has occurred, please try again later. 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