Are Investors Gaining An Appetite For These Top Food Stocks?
Food stocks have had an interesting run in the market during the economic crisis. Many restaurants were forced to close their doors. On the other hand, many food companies with products in supermarkets saw an increase in profit. This is due to people not risking eating at places due to coronavirus. People are more likely to buy food and bring it home.
Food stocks related to restaurants rise when more news regarding reopening is released. Many restaurants have already opened with social distancing guidelines in place. Food delivery services have also seen a big increase in business due to stay at home orders. People want to order food instead of going out during this pandemic. Food stocks related to delivery have seen stock prices rise and recover already.
At the same time many franchises had to close up locations permanently. The revenue loss during the economic crisis is very bad for these companies. This means that not all food stocks are able to do well. Food stocks are volatile, so let’s take a look at two that are holding momentum in the market.
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Top Food Stocks To Buy (Or Sell) In 2020: Papa Johns
The first food stock to discuss is Papa John’s International Inc. (PZZA stock report). Papa John’s is currently the fourth largest pizza delivery company in the United States. The Kentucky based company was founded in 1984 and has seen much growth since. This food stock has seen good growth during the current economic crisis. Many are ordering pizza instead of going out to eat.
Since the coronavirus pandemic began PZZA stock has performed well. PZZA stock price saw an initial drop when the market as a whole dropped. Now PZZA stock has recovered swiftly. In fact PZZA stock price is higher than it was before the pandemic began. Before the economic crash, PZZA stock was at around $69 a share. As of June 17th, PZZA stock price is at $82 a share.
This food stock proves that companies are still able to strive in a dark economy. When a food stock like Papa John’s does well it causes other similar ones to rise. It is unknown how PZZA stock will be affected when the world reopens more. It could go up or down based on Papa John’s financial reports. For now this is a food stock to watch during the virus situation.
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Top Food Stocks To Buy (Or Sell) In 2020: Chipotle
The second food stock to discuss is Chipotle Mexican Grill Inc. (CMG stock report). Chipotle is a fast food chain serving Mexican food. The company has thousands of locations and has seen rapid growth in the last 10 years. Chipotle is an example of a food stock that has actually grown during these dark economic times. It offers its food on delivery services such as DoorDash, and also allows for pickup. Recently the company opened its ordering app to Canada allowing for business to expand even more
Before the stock market crash caused by the coronavirus CMG stock price was around $927 a share. CMG Stock saw a large dip like most stocks did when the market crashed. Since then, CMG stock price has been rising. On June 17th it had reached $1041 a share. This is near the $1055 a share all time high CMG stock reached in May 2020. So CMG stock price is continuing to increase despite all going on in the world. This food stock has brought in many new investors now.
CMG stock is a winner when it comes to the race for recovery with food stocks. CMG stock price will continue to climb if the company sees more steady income from online ordering and pickup.
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What Now?
These two food stocks are perfect examples of how even in a volatile market, a stock can strive. Companies who have managed business correctly during this pandemic have seen great benefits financially. CMG stock and PZZA stock have the potential to continue to grow in the market if they keep up the good efforts. All of these factors contribute to CMG and PZZA being two food stocks to watch.
