U.S. Markets closed
  • S&P 500

    4,201.62
    +34.03 (+0.82%)
     
  • Dow 30

    34,548.53
    +318.19 (+0.93%)
     
  • Nasdaq

    13,632.84
    +50.42 (+0.37%)
     
  • Russell 2000

    2,241.42
    +0.05 (+0.00%)
     
  • Crude Oil

    64.94
    +0.23 (+0.36%)
     
  • Gold

    1,814.80
    -0.90 (-0.05%)
     
  • Silver

    27.41
    -0.07 (-0.26%)
     
  • EUR/USD

    1.2067
    -0.0001 (-0.0121%)
     
  • 10-Yr Bond

    1.5610
    -0.0230 (-1.45%)
     
  • Vix

    18.39
    -0.76 (-3.97%)
     
  • GBP/USD

    1.3895
    +0.0003 (+0.0222%)
     
  • USD/JPY

    109.0500
    -0.0350 (-0.0321%)
     
  • BTC-USD

    56,512.46
    -461.85 (-0.81%)
     
  • CMC Crypto 200

    1,468.60
    -2.81 (-0.19%)
     
  • FTSE 100

    7,076.17
    +36.87 (+0.52%)
     
  • Nikkei 225

    29,331.37
    +518.74 (+1.80%)
     

4 Stocks to Buy as Restaurant Sales Jump in March

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Kaustav Ghosh
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The restaurant industry in the United States took a hit last year due to the outbreak of the COVID-19 pandemic. As social distancing measures had to be put in place to curb the spread of the virus, dining in restaurants had to be halted as well. Although restaurants adapted to the challenges as online deliveries and curbside pickups gained precedence, and outdoor dining was implemented by many restaurants, the overall impact remained negative.

Nonetheless, the situation seems to be improving and the restaurant industry finally seems set to make a comeback this year with the retail sales in March bearing evidence of that. Notably, a CNBC article cited that the Commerce Department reported a rise of 13.4% in retail sales in the bar and restaurant industry  in March. The article stated that this jump was due to the increasing relaxation of COVID-19 restrictions, thanks to the rapid vaccination drive in the country and the $1,400 stimulus checks that people received.

Markedly, the United States administered 3.3 million vaccine doses last week, as mentioned in a WPTA21.com article. This pick-up is sure to aid the restaurant industry in overcoming the challenges that have been plaguing it from last year. On a further positive note, President Joe Biden has also moved up the timeline for making adults eligible for vaccination in the United States. Notably, President Biden said that all American adults will be eligible for COVID-19 vaccination by Apr 19, as mentioned in a Reuters article.

In fact, the National Restaurant Association predicted that sales at U.S. eating and drinking places are set to jump 10.2% in 2021 to $548.3 billion, following a dip of 19.2% last year, as quoted in a Restaurant Business article. The article mentioned that factors like pent-up demand from last year, as people were denied the restaurant experience,, will drive the growth of the restaurant industry this year.

4 Stocks to Buy Now

The restaurant industry seems poised to make a comeback this year owing to the pent-up demand. Reflective of this, retail sales in restaurants and bars also saw a surge in March. Hence, this makes it a good time to invest in restaurant stocks that can make the most of this uptrend going forward. Notably, we have handpicked four such stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Darden Restaurants, Inc. DRI, through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 22.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.5%.

Jack in the Box Inc. JACK operates and franchises Jack in the Box quick-service restaurants. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 13.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 38.1%.

Starbucks Corporation SBUX, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 0.4% over the past 60 days. The company’s expected earnings growth rate for the current year is more than 100%.

Chuy's Holdings, Inc. CHUY, through its subsidiaries, owns and operates full-service restaurants under the Chuy's name. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 9.7% over the past 60 days. The company’s expected earnings growth rate for the current year is 34.5%.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Jack In The Box Inc. (JACK) : Free Stock Analysis Report
 
Chuys Holdings, Inc. (CHUY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research