FinancialCentre’s Analyst Thinks Investing In These Restaurant Stocks Could Be Great: Here Is What You Need to Know


London, UK – Many people feel nervous about investing in the stock market in the current climate. However, there are still opportunities if you know where to look.

According to  Michael Webber, an analyst at FinancialCentre, one area that could be fruitful is the restaurant sector. The analyst has offered several solid reasons for that.

The reasons for this are twofold. Firstly, restaurants are relatively resilient during economic downturns. Secondly, the current situation presents several challenges for the sector, which could offer opportunities for investors.

Hence, according to the analyst, we will consider why investing in restaurant stocks could be good. We will also profile five companies that could be worth considering as part of your portfolio.

Why Invest in Restaurant Stocks?

There are numerous reasons why investing in restaurant stocks could be good.

As mentioned, restaurants are relatively resilient during economic downturns. People still need to eat, even when times are tough. As a result, the sector has tended to outperform the broader market during periods of economic turmoil.

Secondly, the current situation presents several challenges for the sector, which could offer opportunities for investors. For example, many restaurants currently have to operate at reduced capacity due to social distancing restrictions.

However, there are also potential positives to be considered. For example, the current situation has led to a boom in delivery and takeaway sales. This is likely to be a permanent change in consumer behavior, which could benefit restaurant stocks in the long term.

Finally, it is worth noting that the restaurant sector is currently undervalued relative to the broader market. It suggests that there is potential for upside if the industry starts to recover.

Five Restaurant Stocks to Consider

Now let’s look at five restaurant stocks the analyst shared with us that could be worth considering as part of your portfolio.

McDonald’s (MCD)

McDonald’s is one of the world’s most popular fast-food chains, with restaurants in over 100 countries.

McDonald’s stock is traded on the New York Stock Exchange, and the ticker symbol is MCD. As of early 2022, the stock price was around $210 per share

McDonald’s is a reasonably stable company, and the stock price has remained relatively consistent over the past few years. But there is always some volatility in the stock market, so it is essential to do your research before investing.

Yum! Brands (YUM)

Yum! Brands are the owner of several well-known restaurant chains, including KFC, Pizza Hut, and Taco Bell.

Yum! Brands have struggled to profit in recent years, with sales falling. However, the company is now starting to turn around its fortunes. It is worth noting that the stock is currently trading at a discount to its historical average P/E ratio.

Darden Restaurants (DRI)

Darden Restaurants owns several casual dining chains, including Olive Garden, LongHorn Steakhouse, and The Capital Grille.

Darden has been one of the best-performing restaurant stocks in recent years. However, the stock is currently trading at a premium to its historical average P/E ratio. It could suggest that it is overvalued at present.

Domino’s Pizza 

Since 2017, its stock has more than doubled, and it doesn’t show any signs of slowing down. Analysts predict that Domino’s will continue to outperform the market in the coming years. 

Moreover, 2022 is shaping up to be an amazing year for the company, as it is expected to benefit from continued expansion in international markets and growth in same-store sales. Domino’s is poised for another great year with all of these factors working in its favor.

Chipotle Mexican Grill

Chipotle Mexican Grill is a company that investors have been keeping an eye on for the past few years. The company’s stock seems to be stabilizing now. In 2022, Chipotle stock will be worth watching. 

Investors believe the company has been making changes to help the bottom line. They have expanded their menu to include more vegan and vegetarian options. They are also exploring delivery and online ordering options. 

These changes could help Chipotle to grow its customer base and increase sales. It is too early to presume how these changes will affect Chipotle’s stock price, but Chipotle is a company that is worth watching in the coming year.

Final Verdict

All in all, these are five restaurant stocks that could be worth considering for your portfolio. As such, each one possesses its own set of risks and rewards. However, they all have the potential to provide investors with growth and income. But do your research before making any investment decisions.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

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