Data support the restaurant stock these. These products range from the benign and prosaic, including aerospace and defense, biotechnology and internet stocks, to the controversial (think casinos and cannabis, just to name a few) and everything in between. Few fast-food companies can claim anything approaching the growth that Domino's had in the decade ending in 2018. Executives have big plans to more than double the company's store footprint to 20,000 locations over the next decade or so, and this aggressive target should be supported by a continued move toward higher incomes and more discretionary spending in China. The pizza delivery specialist increased its market share in each of those fiscal years while expanding its store base at a robust clip. Restaurant Brands International is the owner of three major chains and in that way earns frequent comparisons with rival Yum! McDonald’s (NYSE:MCD) is one the best-performing names in the Dow Jones Industrial Average this year. Potentially, there will be times when the fund holds more than restaurant stocks than it currently does and times when its restaurant exposure is than it is today. Going into trading Tuesday, with many restaurant stocks down, the median publicly traded restaurant chain had lost more than 60% of its value since its 52-week high, according to an … That growth will require strong execution across new markets with diverse taste preferences. Starbucks (NASDAQ:SBUX) recently hit record highs and Chipotle Mexican Grill (NYSE:CMG) has regained its growth story status. It was born in 2016, in fact, when the larger Yum! Steady growth in KFC and Taco Bell more than made up for the pizza losses in fiscal 2018. … Starbucks' success in the premium coffee niche attracted many competitors, including McDonald's and Dunkin' Brands. But Dunkin' faces serious challenges in moving to extend its brand beyond the Northeastern U.S. region that has traditionally been its base. Second, because it’s a small-cap fund, Amazon.com (NASDAQ:AMZN), the king of large-cap consumer cyclical stocks, doesn’t reside in this fund, creating a performance gap relative to large-cap competitors. ETFs or not, some restaurant stocks, broadly speaking, are soaring. It has a similar attraction in offering low-priced food at convenient locations. McDonald's doesn't operate the most quick-service restaurants in the U.S. (that title goes to privately held Subway), but Mickey D's is by far the biggest global player, with more than 36,000 locations spread out through most markets around the world. Yum China Holdings, Inc. (YUMC) Revenue (TTM): $8.0 billion. On December 17, Louis Navellier & Matt McCall will reveal the major events that will rock the markets in 2021. Expense ratio: 0.63% per year, or $63 on a $10,000 investment. Yet it's hard to imagine the chain mounting a serious challenge to McDonald's in this mature market. Finally, following along with management's regular comments to shareholders can be a great way to gain an understanding of the business while getting a feel for how well actual results tend to sync up with the projections of a management team. Beyond Meat stock is on the rise. McDonald’s (NYSE:MCD) fell as low as $124.23 recently only to bounce back sharply.The fast-food chain will … This is especially true for full-service chains, which are expected to bear the brunt of the sales problems. Its food menu has grown in recent years, but beverage sales still account for roughly three-quarters of its business. Dunkin' Brands operates 21,000 restaurants through its Dunkin' and Baskin-Robbins brands situated in the U.S. and across key international markets. 1125 N. Charles St, Baltimore, MD 21201. Its Popeyes restaurant concept competes head to head with KFC in many markets, in fact, and the fast-food giant also runs thousands of Burger King locations that battle with McDonald's for market share. If you're looking for dividend income, you'll want to stick to more mature businesses like Starbucks and McDonald's, which pay a regular dividend to shareholders. Pizza Hut is second at $12 billion of annual revenue, and Taco Bell clocks in at just under $11 billion. The fresh-fast burrito giant already maintained a loyal base of customers, and many of those also versed in the ease of … However, Restaurant Brands International has demonstrated a knack for elevating the fast-food dining experience in recent years, and that asset should serve it well as it targets its next round of global expansion. Each has the potential to produce acceptable or even market-thumping returns. The GlobalX Millennials Thematic ETF (NASDAQ:MILN) is a stretch as restaurant ETF as just 5.30% of its weight is allocated to the industry and about 60% of that exposure is devoted to a single stock — Starbucks — but there are some other reasons to consider MILN. The Invesco Dynamic Leisure and Entertainment ETF (NYSEARCA:PEJ) is a more than adequate replacement for a dedicated restaurant ETF. They include fast-food chains, franchises and multinational corporations that operate and manage full-service restaurants. The experiential element of millennial proclivities could bode well for restaurant shares going forward and GENY has more of a global kicker than the rival millennials ETF. If growth is your focus, stick to companies like Domino's that are still adding restaurants at an accelerated clip. Chipotle -- the fast-casual leader. The Invesco Dynamic Food & Beverage ETF (NYSEARCA:PBJ) is very similar to the aforementioned PEJ. The golden arches is one of the most recognizable logos … The dividend giant's robust cash flows, meanwhile, give management the means to invest heavily in maintaining its leadership position through store upgrades and new functionality like kiosks, mobile ordering, and home delivery. All rights reserved. McDonald's: the name that started it all. In fact, shares have skyrocketed more than 60% in the first three weeks of 2020. First Watch. All rights reserved. In fact, its iconic Big Mac sandwich just celebrated its 50-year anniversary. Their recent successes with the Burger King and Popeyes brands, at the same time, suggest they can expand into places like China, Spain, and Thailand to significantly improve on their current base of 26,000 restaurants. Chipotle's food safety scare, starting in 2015, demonstrated a key risk of investing in this industry, as customers abandoned the brand in droves following news of foodborne illnesses spreading from several of its locations. CEO Todd Penegor and his team have achieved modest success, as these initiatives keep Wendy's sales growing at existing locations while the restaurant base expands as well. That said, PBJ does allocate over a quarter of its weight to consumer discretionary stocks, the sector where restaurant names reside. By some estimates, a third of all Americans indulge in fast food everyday. Chipotle (NYSE: CMG) is the first of our restaurant stocks to buy. It’s usually more volatile than a traditional, broad-based small-cap ETF. Denny’s. Another millennials fund and another stretch to restaurant ETF reality, but the Principal Millennials Index ETF (NASDAQ:GENY) holds a few restaurant stocks and is cheaper than its aforementioned rival. Your #1 source for Restaurant … The fund holds 30 stocks, 11 of which are restaurant fare. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Yum! The stock table includes relevant common stocks… See you at the top! These include the KFC, Taco Bell, and Pizza Hut brands originally made famous in the U.S. but also several region-specific brands such as Little Sheep and East Dawning. Yet investors have celebrated the business's steady rebound over the past few years and are optimistic that Chipotle can grow quickly as more of the industry shifts toward home delivery. Chipotle grew to prominence by disrupting the fast-food industry. Perhaps surprisingly, PSCD’s allocations to growth and value stocks are nearly even. Stock Advisor launched in February of 2002. Any restaurant on the stock market. Recipe Unlimited owns and operates casual dining chains like East Side Mario’s, Kelsey’s, Montana’s, and The Keg. Brands is aiming to reinvigorate the Pizza Hut brand by attacking the delivery segment more aggressively. Wall Street has worried at times that Domino's lacks a strong competitive moat, given that a version of its product is offered by thousands of quick-service operators -- ranging from food trucks to local neighborhood restaurants. It has taken the company several years, lots of cash, and turnover at the highest ranks to recover from that stumble. Brands. The burger giant has been a staple for decades. Still, McDonald's adjusted to demands for fresher products and higher-quality preparation methods and is back to growing at a robust pace as of mid-2019. Both ETF follows the same index methodology, but PBJ has a significantly larger tilt to the consumer staples sector. Let's conquer your financial goals together...faster. About 56% of Americans go out to eat or have food delivered two to three times a week. Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. Brands company spun off its China holdings into a separate public business. In such a competitive burger space, though, the odds are stacked against the upstart. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. The formula was a massive hit with consumers and helped support a more than 150-fold increase in the chain's stock price in the 25 years following its 1992 initial public offering. Cumulative Growth of a $10,000 Investment in Stock Advisor, significantly improve on their current base, Copyright, Trademark and Patent Information. Millions of People Will Be Blindsided in 2021. Many restaurant stocks are down steeply from their levels just a couple of weeks ago. Stores outside of this dense metropolitan area are booking far lower volumes, and so it's likely that the wider business will see lower profit margins as it matures. None of that will matter to investors if Shake Shack delivers on its promise of taking the better-burger concept to a wider audience in the way Chipotle did with its premium take on burritos. When choosing a fast-food stock to buy, consider its competitive assets such as industry position, scale, and brand power. Net Income (TTM): $0.5 billion. JAB owns sizeable shares in brand names across a diverse range of businesses, but their investments in food include American fast-casual restaurant chains such as Panera Bread, Au Bon Pain, Einstein Brothers Bagels, Insomnia Cookies, Peet’s Coffee… With a leadership transition set for early 2020, the incoming CEO hopes to use the chain's strong global base to accelerate sales growth through a balance of rising customer traffic and an expanding sales footprint. Francfort says Chipotle is one of the best high-growth restaurant options for those with a long-term investing strategy. For Domino's to continue its growth streak, the chain will need to defend its leadership position in the delivery market against new rivals like McDonald's and Starbucks. It's a hard business to succeed in, though, and relatively few companies have what it takes to consistently compete on a national or global scale. The first is that Shake Shack hasn't been enjoying booming growth at its existing locations. Sales Growth: 33% Total Unit Growth: 23% Estimated Sales Per Unit (ESPU) Growth: … 5 Restaurant ETFs to Sink Your Teeth Into, They [Millennials] communicate heavily on social media platforms, consume hours of digital content per day, are physically very mobile, prefer to shop online rather than in stores, tend to be more health-focused than members of other generations, and prefer experiences over physical goods,” says, 8 Next Energy Solutions as We Pass Peak Oil, Fisker Stock Has the Potential for Big Future Gains, Louis Navellier and the InvestorPlace Research Staff, Stock Market Live Updates Monday: Reopening Plays Are on the Move, A Tidal Wave of Cash Is About to Hit the Markets, Top SPAC Merger News This Week: Canoo, XL Fleet, Microvast and 10 More Hot SPACs, 8 Battery Stocks That Electric Vehicle Companies Rely On, The 10 Most Reliable Value Stocks to Buy for 2021, 7 Cheap Stocks to Buy Before the Market Realizes their Worth. Copyright © 2020 InvestorPlace Media, LLC. List of fast food restaurant chains. Its KFC division is its largest, ringing in more than $26 billion of sales in fiscal 2018. Its 300 store additions in both 2017 and 2018 attest to those aggressive expansion hopes. Add in the small-cap overlay, and that growth profile is often enhanced. Known for its all-day breakfast, Denny’s faces an 11.9% chance of defaulting. Don't let the chain's recent IPO convince you that it has little experience, though. Restaurant stocks in this fund include Chipotle, McDonald’s and Starbucks as well as Yum! It maintained 9,400 Dunkin' U.S.-based restaurants as of the end of 2018 but has ambitions to roughly double that footprint over the long term. The Los Angeles-based company is enjoying a market spike due to the recent push for more plant-based meat substitutes by restaurant chains. The securities listed in this page are organized into two tables. Market data powered by FactSet and Web Financial Group. 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