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Proprietary Data Insights Top Restaurant Stock Searches This Month
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Today, we hit up our proprietary Trackstar database to reveal the restaurant stocks investors are searching for most. We’ll check in on some of the names in the top five to see how they’re doing on Main Street and Wall Street. But first, we gotta work out before we can eat out. That’s the American way, isn’t it? Exercise so you can eat whatever the hell you want. Or are we projecting? Maybe not. Source: Placer.ai Across the board, gym visits were up significantly in Q3 2022 versus the same period in 2021 and 2019. Because Planet Fitness (PLNT) is the only gym you can directly invest in via public markets, we’ll focus on it.
Speaking of surges, investor search interest in PLNT surged 106% over the last week, according to Trackstar. While we’re not ready to hit the buy button just yet, Planet Fitness belongs on your watchlist. The stock has outperformed the major indices over the last month, gaining roughly 22%. The company beat earnings estimates on the top and bottom lines in its most recent report. Source: Google Finance |
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Restaurants |
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Work Out to Eat Out |
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Key Takeaways:
A grande Pumpkin Spice Frappuccino from Starbucks (SBUX) delivers 420 calories, 15 grams of fat (including 9 grams of saturated fat), and an impressive, though hardly surprising 65 grams of sugar. These are the types of customizable drinks Gen Z apparently can’t get enough of – to drink and post pictures of on social media. In that fancy cold drink category, Starbucks says Gen Z has made iced shaken espresso drinks the brand’s fastest-growing product category in the U.S., more than doubling in sales year to date. Combine this with the company’s shift to smaller stores and its focus on mobile orders/pickup, and The Juice still loves the stock, especially on dips. While weekly visits to Starbucks are down year over year, the drop isn’t as big as in the rest of the coffee-chain world. Source: Placer.ai As for SBUX stock, it’s up 13% and 35% over the last month and six months, respectively. Investors see the writing on the wall. They like the new strategy and Starbucks’ foothold on young people. Now, let’s broaden our scope beyond coffee.
But not every chain is feeling the pain. Trackstar #2 McDonald’s (MCD) and #3 Chipotle Mexican Grill (CMG) saw foot traffic increases, with Chipotle logging double-digit growth in Q3 compared to 2019. As for the stocks… Source: Google Finance While MCD and CMG aren’t SBUX, they’re both up handsomely over the last six months. In fact, The Juice thinks all three make sense for long-term investors. Lots of room for growth and, with MCD and SBUX, solid and growing dividends.
The Bottom Line: The restaurant space is a tough one, especially in the present economic environment. As we explained earlier this month, it’s incredibly hard for relatively small hospitality groups and standalone chains to compete against the giants. For starters, Starbucks’, McDonald’s, and Chipotle’s size and scale give them more wiggle room to raise prices by just enough to offset inflation and related economic concerns. All three have raised the cost of their fare over the last year. For investors, there’s always room for speculation, but probably not in the spaces we discussed today. Hit up the dividend growth stocks (SBUX, MCD) first and the impressive non-dividend-paying growth stocks (CMG, PLNT) second. Just like your workout/eat-out strategy, this is a solid combo meal for most long-term portfolios. |
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