Check Out These Restaurant Stocks In The Stock Market Today
As the stock market attempts a recovery, investors could be eyeing restaurant stocks. With many parts of the world returning to normalcy after the pandemic, many consumers once again partake in simple pleasures of life such as eating out. And after being stuck at home for the past couple of years, consumers are likely itching to dine at their favorite restaurants. As such, it is no surprise that the restaurant industry is regaining its momentum.
Investors could be watching the likes of Wendy’s (NASDAQ: WEN) at the moment. Earlier this week, its largest shareholder, Trian Fund Management, said that it is exploring an acquisition or another potential deal with the fast-food restaurant. Trian’s website notes that the firm has been pushing to improve Wendy’s value since it first invested in the company in 2005. Elsewhere, we have Jack In The Box (NASDAQ: JACK)which posted its second-quarter financials yesterday. Although its earnings missed estimates, the company saw its total revenue jump by 25.3% to $322.2 million. All things considered, here are four other restaurant stocks to watch in the stock market today.
Restaurant Stocks To Buy [Or Sell] Today
- FAT Brands Inc. (NASDAQ: FAT)
- Dutch Bros Inc. (NYSE: BROS)
- Restaurant Brands International Inc. (NYSE: QSR)
- Chipotle Mexican Grill Inc. (NYSE: CMG)
FAT Brands is a leading multi-brand restaurant franchising company. The company strategically develops, markets, and acquires restaurant concepts around the globe. This would include casual dining, fast-casual, and quick-service dining concepts. Impressively, its portfolio of brands includes Round Table Pizza, Fatburger, Johnny Rockets, and many other renowned brands. And for a sense of scale, FAT franchises over 2,300 units worldwide. The company also boasts a strong brand pipeline for future acquisitions and has a scalable management platform. Despite being under pressure for most of the past year, FAT stock has risen by about 9% this week.
On Wednesday, the company announced that it has entered into an agreement to acquire a franchise store chain from Crest Foods. Specifically, FAT will be acquiring Nestlé Toll House Café by Chip and will also be rebranding the stores to Great American Cookies. This strategic move on FAT’s part is expected to boost its foothold as a leader in the dessert category within the cookie and ice cream spaces. According to CEO Andy Wiederhorn, these acquisitions have served as a strong vehicle for the company’s growth. FAT also believes that its production and distribution capabilities will be able to scale the profitability of its franchisees. With that being said, is FAT stock one to watch?
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Dutch Bros is an upcoming name in the U.S. specialty coffee scene. For the most part, it identifies itself as a high-growth operator and franchisor of drive-thru coffee shops. The company caters to coffee-drinker needs by offering them a selection of high-quality handcrafted beverages. For a sense of scale, Dutch Bros operates via a network of over 500 locations across the U.S. Over the past week, BROS stock has risen by about 30%. On May 11, the company reported its first-quarter 2022 financial results.
For starters, Dutch Bros brought in a revenue of $152.2 million, up by 54% year-over-year. For comparison, revenue in the same period last year was $98.8 million. Company-operated shop revenues came in at $130.2 million, up from $77.9 million and marking an increase of 67.1%. Along with that, it also opened 34 new shops, its second-highest number of openings in a quarter. CEO Joth Ricci shared, “While Dutch Bros is already a well-established and respected brand on the West Coast, we are still in the early stages of our development with the potential for at least 4,000 shops nationwide over the next 10 to 15 years. In 2022, we now intend to open at least 130 new shops, supported by a robust pipeline and strong consumer acceptance.” Given this sentiment, is BROS stock one to watch?
Restaurant Brands International
Restaurant Brands International (QSR) is a Canadian company whose portfolio consists of several major names in the fast-food industry. Specifically, it includes Burger King, Popeyes, and Tim Horton to name a few. According to QSR, the company facilitates approximately $31 billion in system-wide sales annually. QSR is able to do so through its impressive network of over 27,000 restaurants operating across more than 100 countries. Earlier this month, QSR posted its first-quarter 2022 results that beat Wall Street expectations.
For starters, revenue came in at $1.45 billion in the past quarter, beating estimates of $1.41 billion and rising by 15.2% year-over-year. The company owes the solid revenue to Burger King. Notably, the burger chain’s international same-store sales soared 20.1% in the past quarter. Earnings came in at $0.64 per share on an adjusted basis, exceeding the $0.63 estimate by just a hair. Besides that, this also marks the first full quarter that QSR included its recently acquired Firehouse Subs in its revenue. The sandwich chain saw same-store sales growth of 4.2% during the quarter. Considering all this, should you invest in QSR stock?
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Chipotle Mexican Grill
Last, but not least, we have Chipotle. As it stands, Chipotle is one of the largest restaurant companies in the world. The Mexican fast-casual restaurant mainly offers a menu of burritos, tacos, and salads. For a sense of scale, it operates more than 2,500 restaurants worldwide, most of which are based in the U.S. Besides that, the company also has a staff of more than 60,000 people. Towards the end of last month, Chipotle reported its first-quarter earnings and revenue that exceeded analyst estimates.
The company reported a total revenue of $2.02 billion for the quarter, just above estimates of $2.01 billion. On a year-over-year basis, revenue climbed by 16%. Chipotle’s same-store sales also rose by 9% during the quarter. Besides, the company saw a net income of $158.3 million, up from $127.1 million the year before. Accordingly, adjusted earnings per share were $5.70, beating expectations of $5.64 per share. In the same report, the company says it expects same-store sales to grow by 10% to 12% during the second quarter. On that note, is CMG stock a buy?
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