Best restaurant stocks for your October 2021 watchlist
The Delta variant caused panic in many sectors of the stock market, including restaurant stocks. That said, many parts of the country have relaxed lockdown restrictions. Now, it’s no secret that the restaurant industry has faced many challenges throughout the pandemic. However, it continues to be resilient through marketing initiatives and the use of technology to deliver digital offerings. Thus, those who put their menu online are adapting well despite the confinement restrictions.
In fact, some of the industry giants such as McDonald’s Corp (NYSE: MCD) and Domino’s Pizza (NYSE: DPZ) are doing well this year. MCD and DPZ shares have risen by more than 15% this year. Overall, restaurants are optimistic that their businesses will return to pre-pandemic levels as people dine again. It’s true that take out and delivery is convenient, but nothing beats a meal with friends and family with hot and sizzling dishes served at your table. These are the little things that are often taken for granted. So, do you think restaurant stocks will thrive again as the current wave of the pandemic subsides? If so, here’s a list of the top four restaurant titles on the stock exchange right now.
Best restaurant stocks to watch in October 2021
Let’s start the list with one of the biggest coffee retailers in the world, Starbucks. With operations in approximately 83 markets around the world, the company is no stranger to most consumers. Not only that, the company also sells goods and services under various brands including Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos and Princi. SBUX’s stock has increased by over 30% over the past year.
Although it is largely a coffee specialist, Starbucks continues to meet the demands of its customers. Today, the company has added new plant-based products to Chile as it expands its vegetarian menu. Also, there are additions in the form of non-dairy milk substitutes and faux beef sandwiches. From this we can see that the company responds to the great interest of customers for vegetarian options.
Yesterday, the company announced that it will release its fiscal fourth quarter results on October 28. So let’s review the results of its previous quarter. For its third quarter, consolidated net revenues increased 78% to $ 7.5 billion from the previous year quarter. In addition, it also opened 352 new stores in its third quarter, closing the period with a record 33,295 stores worldwide. With that in mind, do you think SBUX stock will be able to maintain momentum going forward?
Mexican Grill Chipotle
Subsequently, we will examine Mexican Grill Chipotle. Right now, Chipotle is one of the largest restaurant companies in the world serving a menu of burritos, tacos, and salads. It operates more than 2,500 restaurants around the world and most of them are based in the United States. You could say CMG stock has been fantastic so far, posting gains of almost 40% since the start of the year.
Earlier this month, Chipotle announced that it continues to evolve its digital experience with improvements to the Chipotle Rewards program. The program has helped the company surpass the $ 2 billion mark in digital sales this year. In fact, it now has over 24 million members and remains among the fastest growing loyalty programs in restaurant industry history.
In light of this, the company is officially rolling out Extras, an exclusive feature that unlocks access to additional points. Thus, helping members get free Chipotle even faster. The new feature is like a game where there are challenges to earn extra points and collect achievement badges. As we see the evolution of digital commerce, the company intends to be at the forefront of this evolution. Additionally, Chipotle will release its third quarter results on October 21. Now, would you consider investing in CMG stocks ahead of its earnings report?
Another top restaurant title on the investor radar is Yum! Brands. For those who don’t know, the company operates the KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and Wingstreet brands around the world. The only exception would be in China, where it operates through a separate company, Yum China Holdings (NYSE: YUMC).
In September, yum! Brands has completed the acquisition of Dragontail Systems Limited. It is an innovative supplier of technological solutions for the food industry. Dragontail’s platform focuses on optimizing and managing the entire food preparation process, from order to delivery. Therefore, it automates the kitchen flow combined with the driver dispatch process. Again, we see the best catering companies such as Yum! emphasize the need to develop their digital strategies.
On top of that, the company also announced plans to hire 40,000 new permanent team members to work in restaurants across the country. Positions are available in corporate and franchise restaurants, the majority focusing on the roles of cook and driver. Well, that’s a strong statement to show the growing demand for Yum! Products and offerings. Given these considerations, do you have YUM stock at the top of your watchlist?
Dave & Buster Entertainment
Dave & Buster’s owns and operates high volume entertainment and dining venues. The company offers its customers the ability to eat, drink, play and watch all in one place. Simply put, you could have a social and fun time while enjoying some great food and drink at the same time. In addition, its stores are designed to accommodate high-end sporting events, private parties and commercial functions.
Financially, the company appears to be recovering to pre-pandemic levels. In its second quarter, revenue hit a record $ 377.6 million, a staggering 642.9% year-over-year increase. Meanwhile, its net income was $ 52.8 million compared to a net loss of $ 58.6 million in the previous year quarter. Safe to say, Dave & Buster is showing great resilience as all of its 142 stores are now open while posting record revenues along the way.
On top of that, he also announced the launch of his NFT Digital Collectibles awards program last week. To commemorate the launch, the first collector to own every city card and game piece will receive a 1 in 1 NFT Super Master and a $ 10,000 Dave & Buster Power Card. Well, it goes without saying, the program will further cultivate the fun vibe that surrounds the business. All in all, would you add the PLAY action to your watchlist?