Is Now The Time To Be Bullish On These Top Restaurant Stocks?
It is no surprise that restaurant stocks were largely affected by the ongoing coronavirus pandemic. Most restaurants were forced to close their doors, switching to a takeout only model. While the takeout system works, it would not see as many customers as the restaurant being open, right? That’s what you would think, but for some restaurants, it has managed to work. Companies like Wingstop (WING Stock Report) and Starbucks (SBUX Stock Report) have seen increases in stock price during 2020.
Restaurant stocks tend to increase in value when more reopening occurs. Lots of restaurants have already opened dining outdoors, some even indoors. Food delivery services took off during the pandemic as well. People would rather order food than go out this year. So the market for top restaurant stocks can be confusing in 2020. Rest assured, it is time to highlight 3 top restaurant stocks that have been performing well in the market. It has been interesting to see how vaccine-related news and reopening have affected this type of company. That is why many investors have turned to this sector as a way to make a profit.
Read More
- Are These The Top Tech Stocks To Buy If The Sell-Off Continues? 3 Names To Know
- What To Know About Palantir’s Upcoming IPO?
Top Restaurant Stocks To Watch In October 2020: The Wendy’s Company
First on this list of restaurant stocks 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, it’s Frosty and many other menu items. To date, it has become one of the largest fast-food chains in North America. The restaurant company has been able to fully recover in its stock price throughout 2020.
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. But then Wendy’s started to report its revenues for Q1 and Q2. The company released its second-quarter results for 2020 on August 5th. In the report, its revenue decreased by 39.9% to $91.8 million. This still beat analyst estimates, not hurting its stock price too much. In fact, WEN stock price has managed to fully recover. WEN stock was at $23 a share in January and is once again at $23 a share at the end of September.
The CEO of the company, Todd Penegor said, “Our business and restaurant economic model continues to show incredible resilience as we build momentum with U.S. same-restaurant sales accelerating to high-single-digit growth in July, driven by the continued strength of our breakfast and digital businesses.” That is why Wendy’s has made this list of restaurant stocks.
Top Restaurant Stocks To Watch In October 2020: Del Taco Restaurants Inc.
Another restaurant stock able to recover in 2020 is Del Taco Restaurants Inc. (TACO Stock Report). Del Taco is a fast-food restaurant chain that primarily serves Mexican food as well as a few other options. The company was acquired by Levy Acquisition Corporation and went public on June 30th, 2015. Shares of TACO stock fell with the rest of the stock market back in February-March. Yet now at the end of September, it has managed to return to its former stock price.
Back in July, the company reported its second-quarter results for 2020. It was here that it was announced its revenue of $104.6 million was 13.9% less year over year. There was also a 15.1% decline in restaurant sales. Obviously, this was due to the pandemic.
The President and CEO of Del Taco said, “Our restaurant teams, franchise partners and support staff are doing exceptional work supporting our people, serving our guests and strengthening our brand as we successfully navigate the business recovery phase of our strategy while preparing for brand acceleration.”
TACO stock is at $8.09 a share as of September 28th, which is higher than its pre-pandemic price of $7.75 a share on average. That is why it is on this list of restaurant stocks to watch.
Top Restaurant Stocks To Watch In October 2020: Jack In The Box Inc.
Last on this list of restaurant stocks is Jack In The Box Inc. (JACK Stock Report). Jack In The Box is an American food chain that operates more than 2243 restaurants in 21 states. The restaurants serve hamburgers, chicken, healthy alternatives, and more. Jack In The Box has become one of the most well-known fast-food chains in the United States. Just like the other companies on this list, it ran into some trouble when the coronavirus pandemic came afoot. Before the pandemic began, the JACK stock price was at $79 a share on average. Then in March, JACK stock fell to $18 a share at its peak decline. Since then, JACK stock price has made a full recovery and is at $80 a share on average as of September 28th.
Back in May, the company released its second-quarter financial results for the quarter ending in April. Its same-store sales decreased by 4.2%. These numbers were increasing before the pandemic, so it seems to be the blame.
The CEO, Lenny Comma stated, “As we navigate the COVID-19 pandemic, I am proud of the way our teams in the restaurant, our employees, our franchisees, and partners have responded nimbly to the changing occasions of our consumers. We remain committed to operating our restaurants with integrity, providing great guest service, and most importantly, protecting the health and safety of our employees and guests.”
Jack In The Box could be a winner in the next quarter. It is not likely that this stock will move much until its next reports are released. That is why it is placed on this list of restaurant stocks to watch before October arrives.
