5 Best Restaurant Stocks to Buy for 2022
While the growing popularity of restaurant food delivery has kept the lights on, declining customer spending on in-store dining has led to increased food spending at grocery stores.
As a result, some restaurants that had already focused on delivery thrived, while others struggled.
The public’s willingness to spend money in restaurants has increased now that the pandemic is behind them.
Food purchases made outside the home consistently exceeded those made at grocery stores throughout 2021 and into 2022.
Despite the difficulties in the industry, investing in the stocks of top restaurants can be profitable.
Over the long term, investors in these top five restaurant stocks should see healthy returns.
Full-service restaurant franchise that goes by the name “Denny’s”. Breakfast is served all day at Denny’s locations, along with burgers, sandwiches, salads, and a wide selection of beverages, snacks, and desserts.
The company announced in early May that Kelli Valade would take over as CEO and chairman on June 13, 2022. Vallade, a thirty-year restaurant veteran, will succeed John Miller.
Brinker International Inc.
Chili’s Grill & Bar, Maggiano’s Little Italy and other physical and online restaurant concepts are all owned, operated and franchised by Brinker International. The United States of America is the primary market for the company’s products and services.
CEO Wyman Roberts announced his resignation in mid-May. Kevin Hochman, now chairman, will take over as CEO when Roberts steps down.
Previously, Hochman led KFC in the United States as president and chief idea officer. In addition to his directorship at Brinker International, Hochman was named president of Chili’s Grill.
There are McDonald’s fast food outlets around the world, many of which are franchised. Burgers, fries, sandwiches and various drinks are on the establishment’s menu. In May, McDonald’s announced that it would sell its Russian companies to current licensee Alexander Govor and withdraw from the Russian market.
Under the terms of the agreement, Govor will purchase the company’s entire portfolio of restaurants and rebrand them under the Govor name. Financial details of the deal have been kept secret. However, McDonald’s expects to write off between $1.2 billion and $1.4 billion as a result of the deal.
Domino’s sales began to plummet. In the first quarter of 2022, comparable sales in the United States fell 3.6% due to rising inflation and a lack of available workers. While the increase in revenue was due in part to a 1% increase in comparable sales worldwide, the increase in expenses resulted in a sharp decline in profitability.
Domino’s mission is to make life easier for its customers. It was a standard option before the outbreak, a common option during the pandemic, and it will likely continue to be a common option once it’s over.
Therefore, Domino’s Pizza Inc. is poised to maintain its position as the undisputed leader in the pizza industry. However, its stock has been somewhat volatile recently due to the collision of high valuation and slowing growth.
Luckin Coffee is an investment company that runs a chain of coffee shops in China. The company’s primary operating channels are mobile apps and in-person pick-up locations. It offers a selection of freshly made drinks, juices and small bites.
On April 11, Luckin Coffee announced that the company had successfully completed its financial debt reorganization and emerged from bankruptcy proceedings. The bankruptcy action involving Luckin Coffee was officially closed on April 8.
A year-over-year comparison of the company’s EPS would be meaningless since it was negative in the prior year period, but positive in the most recent period.