Are Investors Hungry For More Of These Top Consumer Stocks In July?
Consumer stocks have been quite unusual in their market activity since February. This is due to the world being forced to close most restaurant businesses. Many were able to stay open by offering curbside and delivery options. This doesn’t mean financials weren’t affected by these restaurant companies. Most top consumer stocks saw a large decline at the start of the economic crisis.
Many restaurants are reopening across the globe with social distancing guidelines. This doesn’t mean that restaurant businesses are recovering though. There is still a lack of customers going to restaurants. The financial effect that the crisis had caused some to close entirely. So with that being said, consumer stocks are volatile in the stock market. It’s unsure when and if all consumer stocks will be able to make a full recovery. Some such as Chipotle have managed to pull it off by adapting to the virus situation.
The volatility of consumer stocks has investors interested. Since some have made a full recovery and many are on the way, there are many consumer stocks to watch. As reopening continues and customers go out more financials can rise for these restaurant stocks.
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Top Consumer Stock To Buy [Or Avoid] In July 2020: Cracker Barrel Old Country Store
One consumer stock that could be on its way to a full recovery is Cracker Barrel Old Country Store Inc. (CBRL stock report). Cracker Barrel Old Country Store was founded in 1969 and has 660 stores in 45 states. Its menu consists of traditional southern cuisine. Now, Cracker Barrel is a well-known restaurant chain in the United States. It’s had its fair share of discrimination issues that have affected CBRL stock in the past. Other than that its stock price has generally been impacted by new location opening and sales.
CBRL stock price went down by 66.66% in February to March. This was due to the ongoing economic crisis. CBRL stock has slowly been climbing since then. As of June 24th CBRL stock price is $108 a share on average. This is up 92.85% from CBRL stock low of $56 a share on average. CBRL stock price is believed to be rising due to menu improvement and marketing strategies. The company is also been using cost cutting strategies which is helping CBRL stock as well.
If Cracker Barrel can continue its cost cutting efforts and continue reopening restaurants its profits will rise. This will be great news for CBRL stock price. This is why CBRL stock is a potential restaurant stock to buy. The store implementing things like contactless payment will drive more customers in as well. The recovery of CBRL stock is possible so it could be good to keep an eye out.
Top Consumer Stock To Buy [Or Avoid] In July 2020: Texas Roadhouse Inc.
The next trending consumer stock on the rise is Texas Roadhouse Inc. (TXRH stock report). Texas Roadhouse was founded in 1993 and has served many American’s since its opening. The chain restaurant focuses on serving steaks with a Western theme. Texas Roadhouse currently operates around 565 locations in the US and a few other countries. Texas Roadhouse has grown to be quite a large restaurant chain. In 2017 it was reported that its revenue was $2.2 billion. Like many other restaurant stocks, TXRH stock price was affected badly by the economic crisis.
TXRH stock was trading at $71 a share on average right before the economic crisis began. When February and March came, TXRH stock price dropped as low as $30 a share. This is about a 58% decrease for TXRH stock and was very significant for the company. Now, TXRH stock is on the rise. As of June 24th, TXRH stock price has gone up 51% from the $30 a share recent low. Shares of TXRH stock were $51.34 a share on average on June 24th.
This means that Texas Roadhouse could be seeing many more customers in its restaurants recently. Its earnings were down 42.50% in its Q1 reports. This was down more than investors expected. But as many locations open once again TXRH stock price could potentially rise back up. It will be interesting to see how CBRL stock and TXRH stock are able to adapt to the new normal in the world. That is why these are two consumer stocks to watch as both companies have lots of potential in the market.