Are These Top Restaurant Stocks On Your 2020 Watchlist?
It is no surprise that restaurant stocks were largely affected by the ongoing coronavirus pandemic. Restaurants were forced to close their doors and then switched to takeout only. While the takeout model works, it would not see as many customers as the restaurant is open right? That’s what you would think, but for some restaurants, it has managed to work.
Restaurant stocks rise when more reopening occurs. Lots of restaurants have already opened dining rooms with social distancing being a factor. Food delivery services took off during the pandemic as well. People would rather order food than go out during these times. Many restaurant stocks have been able to fully recover in share price up to this point.
For investors, there are many different top restaurant stocks to watch. Some restaurant stocks are doing well as a result of the COVID environment. Others have sunk and are not recovering yet. So this can be an interesting sector as it’s affected by the world around us. When restaurants can reopen completely, many restaurant stocks will rise.
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Top Restaurant Stocks To Watch In 2020: Chipotle Mexican Grill
The first food stock on this list is Chipotle Mexican Grill Inc. (CMG Stock Report) because of its recent momentum. Chipotle is a fast-food chain that serves Mexican food such as burritos and tacos. The company has thousands upon thousands of locations. Chipotle is an example of a restaurant stock that has grown during these dark economic times. Chipotle can also be delivered via services like DoorDash and can be picked up by using the Chipotle app.
Before the stock market crashed, CMG stock was around $927 a share. CMG Stock price saw a large dip like most stocks did when the market crashed. Since then, CMG stock price has been rising more and more. As of July 7th, CMG stock is at $1120 a share. This is a 140% increase from the $465 low that CMG stock hit before. CMG stock has made a full recovery and hit new record highs. There are no signs of CMG stock price stopping here so who knows what heights this restaurant stock could climb to.
Since Chipotle is a very quick serving restaurant, it has helped it stay afloat. If you walk into Chipotle at any given time it will take less than 5 minutes to get your food. This means that delivery and pickup times are much faster than other places. This has allowed CMG stock to reach these new heights because of Chipotle’s financials.
Top Restaurant Stocks To Watch In 2020: The Wendy’s Company
The second restaurant stock that is trending in the market is The Wendy’s Company (WEN Stock Report). Wendy’s is a fast-food restaurant chain with nearly 7,000 locations. Wendy’s is popular due to its square-shaped hamburgers, its’ Frosty, and many other menu items. Wendy’s took a big hit due to the pandemic but is very close to a full recovery.
Shares of WEN stock were around $23 a share before the pandemic. Then, WEN stock price dropped down as low as $7.40 a share. This 67% decrease in WEN stock was very bad for investors. But now WEN stock price has almost made a recovery. As of July 7th WEN stock is at $22 a share which is just $1 less than its previous price. Investors who got in on WEN stock when it was around $7 have made a significant profit. The fact that WEN stock price increased more than 200% to reach its former price is impressive.
Wendy’s was able to stay afloat due to its sales and accessibility. Just like Chipotle, Wendy’s is very quick with orders as it’s a fast food place. People trust fast food more than traditional restaurants during these times. That means there are plenty of restaurant stocks to watch relating to fast food. Only time will tell which restaurant stock will be the next to recover.