Check out these restaurant stocks on the stock market today
As the stock market attempts to rally, investors may turn to restaurant stocks. As many parts of the world return to normal after the pandemic, many consumers are once again enjoying life’s simple pleasures such as eating out. And after being stuck at home for the past two years, consumers are likely looking forward to dining at their favorite restaurants. As such, it’s no surprise that the restaurant industry is regaining momentum.
Investors could watch the tastes of Wendy’s (NASDAQ: WEN) at this time. Earlier this week, its largest shareholder, Trian Fund Management, said it was considering a potential acquisition or other deal with the fast food restaurant. Trian’s website notes that the company has been working to improve the value of Wendy’s since she first invested in the company in 2005. Elsewhere, we have jack in the box (NASDAQ: JACK) which released its second quarter financial statements yesterday. Although its earnings missed estimates, the company saw its total revenue jump 25.3% to $322.2 million. All things considered, here are four more restaurant stocks to watch on the stock market today.
Restaurant inventory to buy [Or Sell] Today
FAT brands is a leading multi-brand restaurant franchise company. The company strategically develops, markets and acquires restaurant concepts worldwide. This would include casual, fast-casual, and quick-service dining concepts. Its impressive brand portfolio includes Round Table Pizza, Fatburger, Johnny Rockets and many other renowned brands. And for an idea of scale, FAT franchises over 2,300 units worldwide. The company also has a strong portfolio of brands for future acquisitions and has a scalable management platform. Despite being under pressure for most of the past year, the FAT stock is up around 9% this week.
On Wednesday, the company announced that it had reached an agreement to acquire a chain of franchise stores from Crest Foods. Specifically, FAT will acquire Nestlé Toll House Café by Chip and will also rebrand the stores as Great American Cookies. This strategic decision on the part of FAT should strengthen its leading position in the dessert category in the biscuits and ice cream sectors. According to CEO Andy Wiederhorn, these acquisitions have been a powerful growth driver for the company. FAT also believes that its production and distribution capabilities will be able to increase the profitability of its franchisees. That being said, is stock FAT one to watch?
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dutch brothers is an upcoming name in the American specialty coffee scene. For the most part, he identifies himself as a high-growth operator and franchisor of drive-through cafes. The company caters to the needs of coffee drinkers by offering a selection of high quality craft beverages. For a sense of scale, Dutch Bros operates through a network of over 500 locations across the United States. Over the past week, BROS stock is up about 30%. On May 11, the company released its first quarter 2022 financial results.
For starters, Dutch Bros generated $152.2 million in revenue, up 54% year-over-year. For comparison, revenue for the same period last year was $98.8 million. Revenue from company-operated stores was $130.2 million, up from $77.9 million, marking a 67.1% increase. Along with this, it also opened 34 new stores, its second highest number of openings in a quarter. CEO Joth Ricci shared: “Although 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 stores nationwide over the next 10-15 years. In 2022, we now aim to open at least 130 new stores, supported by a strong pipeline and strong consumer acceptance.” Given this sentiment, is BROS stock one to watch?
International restaurant brands
International restaurant brands (QSR) is a Canadian company whose portfolio is made up of several big names in the fast food industry. Specifically, it includes Burger King, Popeyes, and Tim Hortons to name a few. According to QSR, the company facilitates approximately $31 billion in annual system-wide sales. QSR is able to do this through its impressive network of over 27,000 restaurants operating in over 100 countries. Earlier this month, QSR released its first quarter 2022 results which beat Wall Street expectations.
For starters, revenue hit $1.45 billion in the last quarter, beating estimates of $1.41 billion and growing 15.2% year-over-year. The company owes these strong revenues to Burger King. Notably, the burger chain’s international same-store sales climbed 20.1% in the most recent quarter. Earnings came in at $0.64 per share on an adjusted basis, just a hair above the $0.63 estimate. On top of that, this also marks the first full quarter that QSR has included its recently acquired Firehouse submarines in its revenue. The sandwich chain saw same-store sales growth of 4.2% in the quarter. Given all this, should you invest in QSR stocks?
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Chipotle Mexican Grill
Last but not least, we have Chipotle. Today, Chipotle is one of the largest restaurant companies in the world. The fast-casual Mexican restaurant primarily offers a menu of burritos, tacos, and salads. For an idea of scale, it operates more than 2,500 restaurants globally, most of which are based in the United States. In addition, the company also has a workforce of more than 60,000 people. Late last month, Chipotle reported first-quarter earnings and revenue that beat analysts’ estimates.
The company reported total revenue of $2.02 billion for the quarter, just above estimates of $2.01 billion. On an annual basis, revenues increased by 16%. Chipotle’s same-store sales also increased 9% in the quarter. Additionally, the company recorded a net profit of $158.3 million, compared to $127.1 million the previous year. As a result, adjusted earnings per share came in at $5.70, beating expectations of $5.64 per share. In the same report, the company says it expects same-store sales to grow 10% to 12% in the second quarter. On that note, is CMG stock a buy?
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