May 26, 2024


The Food community

4 Best Restaurant Stocks According to POWR Ratings By StockNews

2 min read

© Reuters. 4 Best Restaurant Stocks According to POWR Ratings

With nearly 78% of the U.S. population having received at least one dose of COVID-19 vaccine, and with consumer discretionary spending increasing, the near-term prospects for the restaurant industry look promising. So, we think it could be wise to bet on fundamentally sound restaurant stocks Starbucks (SBUX), RCI Hospitality (RICK), Chuy Holdings (CHUY), and Good Times Restaurant (GTIM). They are each ‘Strong Buy’ or ‘Buy’ rated in our proprietary POWR Ratings system. Let’s discuss these names.The restaurant industry faced several operational challenges due to social distancing requirements amid the COVID-19 pandemic, and emerging new variants of the deadly virus continue to impact the industry. However, many restaurants have stayed afloat by focusing on off-premises services, such as deliveries, carry-outs, and drive-throughs.

With roughly 77.7% of the U.S. population above 12 years of age having received at least one dose of a COVID-19 vaccine, and with the gradual easing of social distancing norms, the restaurant industry is expected to witness a solid recovery in the coming months. According to a National Restaurant Association report, food and beverage sales in the restaurant and foodservice industry are expected to reach $789 billion in 2021, up 19.7% from 2020.

Given this backdrop, we think quality restaurant stocks Starbucks Corporation (NASDAQ:), RCI Hospitality Holdings Inc. (RICK), Chuy’s Holdings Inc. (CHUY), and Good Times Restaurants Inc. (GTIM) look like solid bets. They have an overall rating of A (Strong Buy) or B (Buy) in our proprietary POWR Ratings system.

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