In this article, we’ll look at the 11 best restaurant stocks to buy today. If you want to see more stock, head over to 5 Best Restaurant Stocks to Buy Today.
According to the National Restaurant Association’s 2022 State of the Restaurant Industry Report, total restaurant industry sales are expected to reach $898 billion this year, surpassing pre-pandemic levels. However, the restaurant industry must overcome the challenges of rising inflation, rising interest rates, supply chain disruptions and labor shortages to meet to growing demand. About 70% of quick-service, self-service, and quick-service restaurants reported issues with hiring and retaining staff. The restaurant industry added 1.7 million new employees to its workforce in 2021, bringing the total number to 14.5 million employees. Despite this development, many companies were understaffed. By the end of 2022, the restaurant industry is expected to increase by 400,000 additional employees to counter the labor shortage.
Many trends are emerging in the restaurant industry. Some of the top restaurant stocks, such as McDonald’s Corporation (NYSE:MCD), Starbucks Corporation (NASDAQ:SBUX) and Domino’s Pizza, Inc. (NYSE:DPZ), have focused on reducing their front-of-house operations and increasing the size of the kitchen to meet the growing demand for off-site catering. Restaurants that offer online ordering services highlighted that the online channel contributes 34% of their revenue. Another driving force behind the growth of the industry is the growing cafe culture, in addition to the accessibility of healthy fast food options. Additionally, the adoption of advanced POS and inventory management software has now become mainstream.
The best restaurant stocks to invest in
Photo by S O C I A L . C U T on Unsplash
To shortlist the best restaurant stocks, we looked at these companies’ growth strategies in line with emerging industry trends. Analyst ratings and company fundamentals were also discussed. We used the Insider Monkey database of 895 hedge funds in Q2 2022 to rank these stocks.
11. Portillo’s Inc. (NASDAQ:PTLO)
Portillo’s Inc. (NASDAQ:PTLO) is a fast food restaurant chain based in Oak Brook, Illinois.
Experts believe Portillo’s Inc. (NASDAQ:PTLO) operates in the white space, providing the restaurant with an opportunity to sell its products to its loyal customer base. The company is considered to be in the early stages of growth. Portillo’s Inc. (NASDAQ:PTLO) has set a target growth rate of 10% per year for building new units, with the goal of creating a footprint of 600 national restaurants.
Despite economic uncertainty, the restaurant’s comparative store sales were healthy in the second quarter of 2022. Revenue recorded a year-over-year increase of 7%, while comparable store sales increased 1.9% . In August, Baird’s David Tarantino raised the stock’s target price from $22 to $30 and maintained an overweight rating. In order to improve workforce performance, Portillo’s Inc. (NASDAQ:PTLO) constantly practices techniques such as offering employee benefits and career development programs. The analyst believes productivity gains should boost Portillo’s Inc. (NASDAQ:PTLO) bottom line.
10. Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH)
Number of hedge fund holders: 13
Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) is a New Orleans, Louisiana-based operator with more than 150 steakhouses across North America.
The restaurant offers a fine dining experience that is seeing pent-up demand as people shift to experiential dining experiences after the COVID-19 pandemic. Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) is known for delivering consistent taste and customer experience. On September 22, Stephens’ Joshua Long began hedging shares of Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) with a target price of $22 and an overweight rating. The analyst called the stock an attractive growth story in the fine dining restaurant category.
Analysts believe Ruth’s Hospitality Group, Inc. (NASDAQ: RUTH) has strong brand equity among its customers and is poised for low single-digit same-store sales and mid-single-digit unit growth over the long term. . The stock also offers a projected annual dividend yield of 2.7% as of October 31.
Of the 895 hedge funds in Insider Monkey’s database, Ruth’s Hospitality Group, Inc. (NASDAQ:RUTH) was owned by 13 hedge funds in the second quarter of 2022.
9. Wingstop Inc. (NASDAQ:WING)
Number of hedge fund holders: 20
Wingstop Inc. (NASDAQ:WING) is an aviation-themed restaurant chain based in Garland, Texas.
Following the company’s third quarter 2022 results, Wedbush’s Nick Setyan raised Wingstop Inc.’s (NASDAQ:WING) target price from $157 to $177 and reiterated an outperform rating. The analyst pointed out that the company’s third quarter results were well above expectations. Wingstop Inc. (NASDAQ: WING) saw its revenue increase 40.9% year-on-year to $92.67 million. Meanwhile, adjusted EPS was recorded at 45 cents versus 36 cents according to analysts’ forecasts. Analysts expect Wingstop Inc. (NASDAQ:WING) to experience margin expansion going forward and continue its growth trajectory.
Polen Capital discussed its bullish outlook on Wingstop Inc. (NASDAQ:WING) in its Q3 2022 letter to investors. Here’s what the company had to say:
“The top absolute contributors to portfolio performance during the quarter were Wingstop Inc. (NASDAQ: WING), The Trade Desk and Paycom.
Wingstop, a franchised chicken wing restaurant chain, was the best performer during the period. The company announced better-than-expected results, highlighted exciting progress in international growth, and announced plans to launch a chicken sandwich nationwide. After a recent visit to head office, we believe there are many tailwinds for the company despite the deteriorating consumer outlook.
8. Dine Brands Global, Inc. (NYSE:DIN)
Number of Hedge Fund Holders: 25
Dine Brands Global, Inc. (NYSE: DIN) is a Glendale, California-based full-service restaurant company that franchises Applebee’s Grill & Bar and IHOP.
Shares of Dine Brands Global, Inc. (NYSE:DIN) have a forward dividend yield of 2.8% as of October 31. Experts believe the brands under Dine Brands Global, Inc. (NYSE:DIN) are backed by strong demand. Applebee posted comparable sales growth of 1.8% during the second quarter of 2022, while IHOP posted a 3.6% increase.
In a research note published Sept. 6, CL King’s Todd Brooks resumed coverage of Dine Brands Global, Inc. (NYSE:DIN) stock with a target price of $84 and a buy rating. Brooks pointed out that the average unit volume of the company’s two brands is moving in a positive direction. Analysts believe Dine Brands Global, Inc. (NYSE:DIN) is undervalued as it currently trades at 12.0x earnings, compared to the historical valuation of 14.2x earnings. Dine Brands Global, Inc. (NYSE:DIN) is one of the best restaurant stocks because it has the scale advantage of its brands.
Simcoe Capital Management increased its stake in Dine Brands Global, Inc. (NYSE: DIN) by 30% during the second quarter of the year.
7. Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)
Number of hedge fund holders: 31
Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is a Dallas, Texas-based company that provides entertainment and dining experience in one place. The company combines a full-service restaurant with an arcade facility at all of its locations, providing the opportunity to capture a greater share of consumer food and entertainment spending at its 140 locations across the United States.
Compared to the P/E range of 14.1x and 32.6x from 2015 to 2019, Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is currently trading at around 12.1x the P/E of next year’s projections. Experts believe the current multiples provide an entry point for potential investors, as the company is attractively valued and at the lower end of its multiple range. Second quarter 2022 results revealed that Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is benefiting from the expansion of its outlets. The company’s revenue rose 24.1% in the second quarter from pre-pandemic levels in the first quarter of 2019.
Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) is also actively pursuing its international expansion, as it plans to open 11 new units in Saudi Arabia, the United Arab Emirates (UAE), and Egypt. The company has entered into a partnership with Abdul Mohsen Al Hokair Holding Group for its expansion into the Middle East and North Africa markets.
In Q2 2022, 31 hedge funds reported holding a stake in Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY).
6. Darden Restaurants, Inc. (NYSE:DRI)
Number of hedge fund holders: 32
Darden Restaurants, Inc. (NYSE: DRI) is an Orlando, Florida-based operator that operates multiple restaurant brands in 1,850 locations. The company claims to receive 400 million guests a year.
In a note published Oct. 6, KeyBanc’s Eric Gonzalez raised Darden Restaurants, Inc.’s (NYSE: DRI) target price from $136 to $150 and maintained an overweight rating. The analyst revised the target price following meetings with the company’s management team in Orlando, Florida. Gonzalez believes the Darden Restaurants, Inc. (NYSE: DRI) portfolio is in a better position than its competitors as the brands offer affordable prices and have focused heavily on improving their products over the past two years. In the first quarter of FY23, Darden Restaurants, Inc. (NYSE: DRI) reported quarterly revenue of $2,446 million, up 6% from the same period a year ago . This was fueled by 34 new restaurant openings during the period and a comparable store sales increase of 4.2%. Darden Restaurants, Inc. (NYSE: DRI) has some of the best information in the industry and a detailed strategic planning process to improve operational efficiency.
Besides Darden Restaurants, Inc. (NYSE:DRI), stocks such as McDonald’s Corporation (NYSE:MCD), Starbucks Corporation (NASDAQ:SBUX) and Domino’s Pizza, Inc. (NYSE:DPZ) are also among the top stocks. in the catering sector.
Click to read on and see the top 5 restaurant stocks to buy today.
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Disclosure. None. 11 Best Restaurant Stocks to Buy Today originally posted on Insider Monkey.
What is the 3 day rule in stocks?
In short, the 3-day rule states that following a substantial drop in the stock price – usually single digits or more in terms of percentage change – investors should wait 3 days to buy.
Why do I have to wait 3 days to sell shares? The Securities and Exchange Commission (SEC) requires trades to settle within three business days, also known as T 3. When you buy stock, the brokerage firm must receive your payment no later than three business days after the close of the transaction. realized.
How many days after selling a stock can you buy it back? Specifically, the wash sale rule states that tax loss will be denied if you purchase the same security, a contract or option to purchase the security, or a “substantially identical” security, within 30 days before or after the date you sold the loss-making investment (this is a 61-day window).
Can I buy and sell the same stock 3 times a day?
There are no restrictions on placing multiple buy orders to buy the same stock more than once per day, and you can place multiple sell orders to sell the same stock in a single day.
Can you sell and then buy the same stock in one day? A day trade occurs when you buy and sell (or sell and buy) the same security in a margin account on the same day. The rule applies to day trading any security, including options. Day trading on a cash account is generally prohibited.
Does buying the same stock twice count as a day trade? Does selling and then buying the same stock count as a day trade? For example, you own 5 shares of a stock on Tuesday, then on Wednesday you sell 5 shares and then buy 5 shares. This is not a day trade. When we are long, a day trade consists of buying (opening) and selling (closing) – all within the same day.
How many times I can buy and sell same stock in a day?
In general, as long as you follow the rules of the Financial Industry Regulation Authority (FIRNA), you can buy and sell stocks as often as you like.
Can I sell and buy the same stock on the same day? You can sell a stock for profit This is, as mentioned earlier, a capital gains tax. You can buy back the same stock at any time, and it doesn’t affect the sale you made for profit. The rules only dictate that you pay taxes on any profit you make from assets.
Can I sell my stock after 3 days?
A contract note typically shows a breakdown of all trades made during the day along with the trade reference number. It also shows the breakdown of fees charged by the broker. The day after the trade is called day T 1. On day T 1 you can sell the stock you bought the day before.
What is the 3-day trading rule? In short, the 3-day rule states that following a substantial drop in a stock’s price – usually single digits or more in terms of percentage change – investors should wait 3 days to buy.
Can I sell my shares after 2 days? The day you sell the stock is again called the trading day, represented by “day T”. The moment you sell stock from your DEMAT account, the stock is blocked. Before day T 2, the blocked shares are put back on the stock exchange.
How soon can I sell a stock after buying it?
You can buy and sell a stock on the same day, which is called day trading, but there are some restrictions you should be aware of.
When can I resell my shares after buying them? On day T 1, you can sell the stock you bought the day before. If you do, you are essentially making a quick trade called “Buy Today, Sell Tomorrow” (BTST) or “Acquire Today, Sell Tomorrow” (ATST). Remember that the stock is not yet in your DEMAT account.
How long do you have to hold a stock before you can sell it? There is no minimum period for which an investor must hold his shares. But, investments that are sold with a gain are taxed at a capital gains tax rate. This rate changes depending on whether the investor holds the security for more or less than one year.
Is Chipotle private or public?
|traded as||NYSE: CMG S&P 500 Component|
|Based||July 13, 1993|
What kind of business ownership is Chipotle? The vast majority of Chipotle restaurants are company-owned; less than ten are franchisees.
Who owns most of Chipotle’s stock? Chipotle Mexican Grill (NYSE: CMG) is owned by 92.82% institutional shareholders, 15.55% Chipotle Mexican Grill insiders and 0.00% retail investors. Bank Ag Deutsche is the largest individual shareholder of Chipotle Mexican Grill, holding 2.36 million shares representing 8.50% of the company.
What is best thing to invest in right now?
12 best investments right now
- High Yield Savings Accounts.
- Certificates of Deposit (CDs)
- Money market funds.
- Government bonds.
- Corporate bonds.
- Mutual funds.
- Index funds.
- Exchange Traded Funds (ETFs)
What’s the next big thing to invest in 2022? As 2022 approaches, some of the key market sectors to watch include oil, gold, autos, services and housing. Other major areas of concern include winding down, interest rates, inflation, payment for order flow (PFOF), and antitrust.
Is Trader Joe’s a public?
No. Trader Joe’s is privately held.