The restaurant industry ranges from local mom and pop eateries to national and international chains. The industry is notoriously difficult for business owners, with about 60% of new restaurants failing within the first year. One reason for this is that restaurant spending tends to be very discretionary and can fluctuate dramatically as the economy expands. The COVID-19 pandemic can accelerate restaurant failure rates. Variants of the Delta prompted many restaurants to reopen their dining rooms after opening them to customers earlier in the year. The most famous publicly traded restaurants include McDonald’s (MCD) and Chipotle Mexican Grill Ink (CMG).
As of September 10, 2021, the restaurant industry, represented by the Dow Jones US Restaurant & Bar Index, has outperformed the broader market with a total return of 27.6% over the last 12 months. By comparison, the Russell 1000’s total return is 37.1% for the same period. All statistics in the table below are current as of September 10, 2021.
Here are the top 3 restaurant stocks with the highest value, the fastest growth, and the most momentum.
These are the stocks of the restaurant with the lowest price-earnings ratio (P / E) for 12 months. A low rate of return on stock prices indicates that you pay less for every dollar you make, as profits can be returned to shareholders in the form of dividends or repurchases.
|Best Value Restaurant Stock|
|Price ($)||Market capitalization ($ B)||12-month trailing price-earnings ratio|
|Cracker Barrel Old Country Store Inc. (CBRL)||135.75||3.2||13.3|
|Jack in the Box (JACK)||100.56||2.2||13.9|
|Del Taco Restaurants Inc. (TACO)||8.50||0.3||14.7|
Source: Y Charts
- Cracker Barrel Old Country Store Inc .: Cracker Barrel Old Country Store operates a chain of over 660 restaurants in 45 states in the United States. Its atmosphere and cuisine are themed of southern countries.
- Jack in the Box Co., Ltd .: Jack in the Box operates and franchises a restaurant of the same name. The chain offers burgers, sandwiches, salads, Mexican food, and related products, and operates in the United States and Canada. Jack in the Box, which ended on July 4, 2021, reported a 23.0% year-on-year increase in net income and achieved 11.2% year-on-year revenue growth. Same-store sales also increased.
- Del Taco Restaurants Inc. : Del Taco Restaurants operates and franchises restaurants that serve both Mexican and classic American cuisine. The company offers tacos, burritos, cheeseburgers, french fries and milkshakes.
These are top ranked by growth models, scoring companies based on a 50/50 weighting of year-over-year rate of return growth in the most recent quarter and earnings per share (EPS) growth in the most recent quarter. It is a restaurant stock of. Both sales and revenue are key factors in a company’s success. Therefore, ranking a company by only one growth indicator can make it more vulnerable to accounting anomalies (such as tax law changes and restructuring costs) for the quarter, and one of the numbers can be non-representative to the business. There is sex. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.
|Fast-growing restaurant stock|
|Price ($)||Market capitalization ($ B)||EPS growth rate (%)||Revenue growth (%)|
|Chipotle Mexican Grill Ink (CMG)||1,901.03||53.4||2,180||38.7|
|Dave & Buster’s Entertainment Co., Ltd. (PLAY)||35.85||1.7 1.7||Not applicable (see company description)||642.9|
|Luckin Coffee Co., Ltd. (LKNCY)||16.10||4.1||Not applicable (see company description)||521.0|
Source: Y Charts
- Chipotle Mexican Grill Ink: Chipotle Mexican Grill operates a chain of fast casual Mexican restaurants. We have burritos, burritos bowls, tacos, salads, etc. using fresh ingredients. Net income in the second quarter of 2021 surged nearly 23 times due to strong revenue growth, comparable restaurant sales and digital sales.
- Dave & Buster’s Entertainment Co., Ltd .: Dave & Buster’s Entertainment owns and operates locations throughout North America that combine dining and entertainment for adults and children, including games and video arcades. The company reported the results for the second quarter of 2021 for the quarter ended September 1, 2021 on August 1. Dave & Buster’s reported quarterly net income of $ 52.8 million and record revenue of $ 377.6 million compared to a net loss in the second quarter of 2020. .. The company cited investments in new menus, marketing and technology as the main drivers of good performance. Dave & Buster’s is not listed in the EPS growth rate in the table above as EPS changed from negative to positive during the period.
- Luckin Coffee Co., Ltd .: Luckin Coffee is a coffee chain based in China with thousands of locations throughout China. Luckin had a negative EPS in the last quarter, making it impossible to calculate EPS growth.
These are the restaurant inventories that have shown the highest total returns in the last 12 months.
|Momentum restaurant stock|
|Price ($)||Market capitalization ($ B)||12-month trailing total return (%)|
|Luckin Coffee Co., Ltd. (LKNCY)||16.10||4.1||603.1|
|One Group Hospitality Inc. (STKS)||10.16||0.3||426.4|
|Dave & Buster’s Entertainment Co., Ltd. (PLAY)||35.85||1.7 1.7||99.0|
|Russell 1000||Not applicable||Not applicable||37.1|
|Dow Jones US Restaurant & Bar Index||Not applicable||Not applicable||27.6|
Source: Y Charts
- Luckin Coffee Co., Ltd .: See company description above.
- One Group Hospitality Co., Ltd .: ONE Group Hospitality operates fine dining and lounges in the United States and Europe. The company also provides hospitality management services to hotels and casinos. ONE Group had a net profit attributable to the company in the second quarter of 2021 of $ 13.8 million, while a net loss of $ 70.8 million in the year-ago quarter.
- Dave & Buster’s Entertainment Co., Ltd .: See company description above.
The comments, opinions and analyzes contained in this document are for informational purposes only and should not be considered as individual investment advice or recommendations regarding investing in securities or adopting investment strategies. We believe that the information provided here is reliable, but we do not guarantee its accuracy or completeness. The views and strategies contained in our content may not be suitable for all investors. Due to the rapid changes in market and economic conditions, all comments, opinions and analyzes contained in our content are current as of the date of posting and are subject to change without notice. This material is not intended to be a complete analysis of all important facts about a country, region, market, industry, investment, or strategy.
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. Also, if necessary, refer to original studies from other reputable publishers.Learn more about the standards we follow to create accurate and fair content