More than 10 of PSCD’s 97 holdings are restaurant stocks, reflecting the small-cap status of many of dining names. Restaurant Brands International (NYSE:QSR). Wendy's 7,000 restaurants make it the third-largest quick-service restaurant chain in the burger niche. Many restaurant stocks are down steeply from their levels just a couple of weeks ago. Each has the potential to produce acceptable or even market-thumping returns. None of that will matter to investors if Shake Shack delivers on its promise of taking the better-burger concept to a wider audience in the way Chipotle did with its premium take on burritos. Dunkin' Brands operates 21,000 restaurants through its Dunkin' and Baskin-Robbins brands situated in the U.S. and across key international markets. While McDonald's added convenience and value to Americans' eating habits, Starbucks won global blue-chip status by boosting the coffee experience to a premium level. The stock table includes relevant common stocks… Its Popeyes restaurant concept competes head to head with KFC in many markets, in fact, and the fast-food giant also runs thousands of Burger King locations that battle with McDonald's for market share. Brands company spun off its China holdings into a separate public business. ETFs or not, some restaurant stocks, broadly speaking, are soaring. CEO Jose Cil and his team have aspirations to establish Tim Hortons more firmly in the U.S. market over the next few years. Yum! 1125 N. Charles St, Baltimore, MD 21201. Finally, following along with management's regular comments to shareholders can be a great way to gain an understanding of the business while getting a feel for how well actual results tend to sync up with the projections of a management team. This includes full-service restaurants, fast-food restaurants… These include menu innovation, aggressive value-based promotions, and an active social media presence. Recipe Unlimited owns and operates casual dining chains like East Side Mario’s, Kelsey’s, Montana’s, and The Keg. In fact, its iconic Big Mac sandwich just celebrated its 50-year anniversary. Starbucks ( SBUX , $58) is a good example. Chipotle (NYSE: CMG) is the first of our restaurant stocks to buy. List of defunct fast-food restaurant chains; List of ice cream parlors; List of pizza chains; Lists of restaurants; List of revolving restaurants; List of seafood restaurants; … The formula was a massive hit with consumers and helped support a more than 150-fold increase in the chain's stock price in the 25 years following its 1992 initial public offering. Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. A foundational aspect of that initiative is its espresso-based coffee rollout that seeks to establish the fast-food specialist as a premium caffeinated drink provider. Chipotle grew to prominence by disrupting the fast-food industry. Investors interested in the fast-food industry wouldn't be limiting themselves by focusing on just these top stocks. Executives have big plans to more than double the company's store footprint to 20,000 locations over the next decade or so, and this aggressive target should be supported by a continued move toward higher incomes and more discretionary spending in China. See you at the top! Yet it's hard to imagine the chain mounting a serious challenge to McDonald's in this mature market. Don't let the chain's recent IPO convince you that it has little experience, though. Like its main rivals, Burger King and McDonald's, the chain sells a range of staple products like its "never-frozen" burgers, Frosty ice cream desserts, chili, and chicken sandwiches, along with seasonal or limited-time offers. It also relies on Yum China holding off rival fast-food giants -- all of which see the market as critical to their global ambitions. The golden arches is one of the most recognizable logos … Its valuable brand and consistently high sales volumes allow McDonald's to charge these managers premium rates, leading to market-beating profit margins. Any restaurant with more than ten units. That growth will require strong execution across new markets with diverse taste preferences. Article printed from InvestorPlace Media, https://investorplace.com/2019/09/restaurant-etfs-are-hard-to-find-but-these-funds-will-do/. Restaurant stocks to watch today. Customer traffic declined in 2018 and through most of 2017, which doesn't bode well for a company aiming to spread itself deeper into the U.S. fast-food landscape. PEJ follows the Dynamic Leisure & Entertainment Intellidex Index and that benchmark “is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,” according to Invesco. That diversity has served investors well over the years. In such a competitive burger space, though, the odds are stacked against the upstart. Copyright © 2020 InvestorPlace Media, LLC. Restaurant Stocks: McDonald's (MCD) Source: 8th.creator / Shutterstock.com. This post is part of the On the Margin blog.. McDonald's accounts for roughly 7% of all annual fast-food sales, but that's not where the company earns most of its money. Yum China Holdings, Inc. (YUMC) Revenue (TTM): $8.0 billion. It has a similar attraction in offering low-priced food at convenient locations. Five restaurant chains plunging in value. Chains are popular for a reason. It maintained 9,400 Dunkin' U.S.-based restaurants as of the end of 2018 but has ambitions to roughly double that footprint over the long term. McDonald’s (NYSE:MCD) is one the best-performing names in the Dow Jones Industrial Average this year. Its food menu has grown in recent years, but beverage sales still account for roughly three-quarters of its business. Both ETF follows the same index methodology, but PBJ has a significantly larger tilt to the consumer staples sector. This is especially true for full-service chains, which are expected to bear the brunt of the sales problems. Copyright © List of fast food restaurant chains. Francfort says Chipotle is one of the best high-growth restaurant options for those with a long-term investing strategy. While that's achievable, how quickly the expansion happens will depend on broader economic growth trends in the country. Entrenched operators, especially Starbucks, have held dominant positions in key markets like California for years, and Dunkin' doesn't enjoy the same brand awareness there as it does in states like Massachusetts, where it is headquartered. Pizza Hut is second at $12 billion of annual revenue, and Taco Bell clocks in at just under $11 billion. All rights reserved. In response, the chain's strategy involves shifting its food and beverage menu to a platform that can compete better across the country. Yet the chain has outpaced these competitors for years, using a mix of marketing savvy and technical innovations like its "hot-spot" program that allows for quick delivery to thousands of nontraditional addresses like parks and beaches. Plus, MILN is up 29% year-to-date. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Brands (NYSE:YUM), among others. Few fast-food companies can claim anything approaching the growth that Domino's had in the decade ending in 2018. The burger giant has been a staple for decades. The burger giant's massive size is normally a key advantage, but size proved a challenge as it struggled to react to major changes in consumer tastes around natural ingredients in recent years. The fresh-fast burrito giant already maintained a loyal base of customers, and many of those also versed in the ease of … Its 300 store additions in both 2017 and 2018 attest to those aggressive expansion hopes. Together, these chains account for 48,000 locations around the world. And while there are always risks involved when investing in stocks, the strong track records of the above businesses illustrate how protected they can be from normal market swings. Denny's … 5 Restaurant ETFs to Sink Your Teeth Into, They [Millennials] communicate heavily on social media platforms, consume hours of digital content per day, are physically very mobile, prefer to shop online rather than in stores, tend to be more health-focused than members of other generations, and prefer experiences over physical goods,” says, 8 Next Energy Solutions as We Pass Peak Oil, Fisker Stock Has the Potential for Big Future Gains, Louis Navellier and the InvestorPlace Research Staff, Stock Market Live Updates Monday: Reopening Plays Are on the Move, A Tidal Wave of Cash Is About to Hit the Markets, Top SPAC Merger News This Week: Canoo, XL Fleet, Microvast and 10 More Hot SPACs, 8 Battery Stocks That Electric Vehicle Companies Rely On, The 10 Most Reliable Value Stocks to Buy for 2021, 7 Cheap Stocks to Buy Before the Market Realizes their Worth. The first is that Shake Shack hasn't been enjoying booming growth at its existing locations. Denny’s (DENN) The restaurant chain bills itself as “America’s Diner” and many of its regular … The chain parlayed those advantages into a store base that today maintains over 2,400 locations, mainly in the United States. 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. Let's conquer your financial goals together...faster. These products range from the benign and prosaic, including aerospace and defense, biotechnology and internet stocks, to the controversial (think casinos and cannabis, just to name a few) and everything in between. What that means is that PEJ status as a restaurant ETF is fluid. The pizza delivery specialist increased its market share in each of those fiscal years while expanding its store base at a robust clip. Your #1 source for Restaurant … Restaurant Brands International is the owner of three major chains and in that way earns frequent comparisons with rival Yum! Stock Advisor launched in February of 2002. Second, because it’s a small-cap fund, Amazon.com (NASDAQ:AMZN), the king of large-cap consumer cyclical stocks, doesn’t reside in this fund, creating a performance gap relative to large-cap competitors. It’s usually more volatile than a traditional, broad-based small-cap ETF. If growth is your focus, stick to companies like Domino's that are still adding restaurants at an accelerated clip. Almost all full-service restaurant chains … Yum! Invesco Dynamic Leisure and Entertainment ETF (PEJ) Expense ratio: 0.63% per year, or $63 on a … What is interesting about the current lineup of industry ETFs is that there are no dedicated restaurant ETFs. Add in the small-cap overlay, and that growth profile is often enhanced. That said, PBJ does allocate over a quarter of its weight to consumer discretionary stocks, the sector where restaurant names reside. For Domino's to continue its growth streak, the chain will need to defend its leadership position in the delivery market against new rivals like McDonald's and Starbucks. Due to the dearth of true restaurant ETFs, some stretching is necessary here. However, Restaurant Brands International has demonstrated a knack for elevating the fast-food dining experience in recent years, and that asset should serve it well as it targets its next round of global expansion. Data support the restaurant stock these. Yet investors have celebrated the business's steady rebound over the past few years and are optimistic that Chipotle can grow quickly as more of the industry shifts toward home delivery. Once upon a time, there were, but those funds didn’t gain traction with investors and went to the ETF graveyard, indicating that not all themed ETFs will find receptive audiences. Restaurants Stocks . The securities listed in this page are organized into two tables. Perhaps surprisingly, PSCD’s allocations to growth and value stocks are nearly even. GENY, which follows the Nasdaq Global Millennial Opportunity Index, allocates about half its weight to ex-US stocks while MILN mainly a domestic fund. Denny’s. Known for its all-day breakfast, Denny’s faces an 11.9% chance of defaulting. In lieu of dedicated funds, here are some pseudo restaurant ETFs to consider. Today, Starbucks operates more than 17,000 locations, with the U.S. and China being its two biggest markets. Sales Growth: 33% Total Unit Growth: 23% Estimated Sales Per Unit (ESPU) Growth: … Will your money be safe? Executives hope to pair successes there with a growing store base that keeps rivals out of most of its neighborhoods by making carryout a breeze and by giving Domino's one of the most efficient delivery infrastructures of any company. MILN touches a broad range of sectors and themes that millennials are driving, including “social media and entertainment, food and dining, clothing and apparel, health and fitness, travel and mobility, education and employment, housing and home goods, and financial services,” according to Global X. MILN may not be the restaurant ETF some investors are hoping for, but it is a nifty, tactical play on a burgeoning demographic that’s growing its wealth and spending power. If you're looking for dividend income, you'll want to stick to more mature businesses like Starbucks and McDonald's, which pay a regular dividend to shareholders. That's tantalizing growth, but there are also a few major areas of concern for investors. 5. That's a likely scenario, given that Yum! The Invesco Dynamic Leisure and Entertainment ETF (NYSEARCA:PEJ) is a more than adequate replacement for a dedicated restaurant ETF. Roughly two-thirds of Wendy's sales occur at the drive-thru window. By some estimates, a third of all Americans indulge in fast food everyday. Its KFC division is its largest, ringing in more than $26 billion of sales in fiscal 2018. Going into trading Tuesday, with many restaurant stocks down, the median publicly traded restaurant chain had lost more than 60% of its value since its 52-week high, according to an … The following is a list of some of the restaurant stocks highlighted by three pros as benefiting from a very supportive environment over … 2020 InvestorPlace Media, LLC. And the best fast-food stocks enjoy huge market potentials thanks to some basic and enduring consumer preferences around taste, value, and convenience. A Restaurant Chain is any restaurant with a “headquarters” (usually in another state). Restaurant stocks took a big hit during the 2007–09 bear market, even though most of the companies held up reasonably well. Meanwhile, profit margins still haven't approached their 2015 highs as of mid-2019. The chain has stumbled at times against these rivals, as products that had been hits in the past, like holiday merchandise and dessert drinks, fell out of favor in a quickly shifting industry. That success should allow it to remain a major industry player, particularly as competition moves into China. Many restaurant chains in the U.S. are traded publicly either on the Nasdaq Stock Market or the New York Stock Exchange. That group includes the aforementioned Chipotle, McDonald’s and Starbucks as well as several other fast food and fast casual names. But Starbucks has a knack for adjusting itself to the latest tastes while driving the industry forward through drink innovations and specialty products. “We believe that the companies that effectively cater to Millennials’ predilections will penetrate a consumer base of 90-million strong and therefore are more likely to outperform the broad market over the long term,” according to Nasdaq. But Dunkin' faces serious challenges in moving to extend its brand beyond the Northeastern U.S. region that has traditionally been its base. It has taken the company several years, lots of cash, and turnover at the highest ranks to recover from that stumble. Steady growth in KFC and Taco Bell more than made up for the pizza losses in fiscal 2018. The dividend giant's robust cash flows, meanwhile, give management the means to invest heavily in maintaining its leadership position through store upgrades and new functionality like kiosks, mobile ordering, and home delivery. The GlobalX Millennials Thematic ETF (NASDAQ:MILN) is a stretch as restaurant ETF as just 5.30% of its weight is allocated to the industry and about 60% of that exposure is devoted to a single stock — Starbucks — but there are some other reasons to consider MILN. McDonald’s (NYSE:MCD) fell as low as $124.23 recently only to bounce back sharply.The fast-food chain will … It also helps that Domino's small store footprint makes it an ultra-efficient business. As such, six of the fund’s seven consumer cyclical holdings are dining out names, giving PBJ some chops as a restaurant ETF. Brands has a firm hold in three of the biggest fast-food niches. Cumulative Growth of a $10,000 Investment in Stock Advisor, significantly improve on their current base, Copyright, Trademark and Patent Information. Starbucks' success in the premium coffee niche attracted many competitors, including McDonald's and Dunkin' Brands. Financial Market Data powered by FinancialContent Services, Inc. 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