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Are Investors Hungry For These 2 Restaurant Stocks?

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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.

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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.

What Now

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.

By Josh Dylan

Josh Dylan is an active contributor to StockMarket.com. His forte is in geosocial events and emerging trends in the stock market today. As an active contributor to other financial outlets like MarijuanaStocks.com, his ability to study current events and determine the potential market reaction is what sets him apart from other writers.

After studying at UC Santa Cruz and earning a bachelor's of art and art history, Josh also went on to start his own business in art resale. Identifying underserved niches like this has allowed him to think outside the box when it comes to applying this approach to the stock market.

His new-age take on social media and branding gave Josh the foresight to apply certain lifestyle trends to market moving topics. This has included the recent trend in the cannabis industry and marijuana stocks as well as following emerging technology such as artificial learning and web-bots. Fundamentals are just as important as momentum in Josh’s opinion. Being able to understand how to apply popular trends to investing is of major importance. If the price of oil is sinking but the price of gold is following along, we want to understand why, not just follow the broader trend.

Josh Dylan makes it a point to not only mention what hot “today” but also find ways to apply that to find future opportunity in the stock market. What’s more is that Josh has become an active part in the StockMarket.com social media team. He works to delivery top research not only one StockMarket.com but also bring it to the readers, directly.

By studying the macro-economic events in the market, Josh makes sure to find events that could shift micro-economic trends. He prides himself on taking a unique approach to information but not taking things for “face value”. When it comes to the stock market, things can change at a moment’s notice and Josh makes sure to stay ahead of that with sound research and diligence. When Josh isn’t writing about the stock market, he enjoys spending time with his family and surfing. He currently calls Southern California his home.