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5 Restaurants That Outperformed the S&P 500 in the Past 6 Months

In light of DoorDash, a Palo Alto, California-based food-delivery company, raising $400 million in equity financing, five restaurants that have outperformed the Standard & Poor's 500 Index by over 10% during the past six months are Chipotle Mexican Grill Inc. (NYSE:CMG), Domino's Pizza Inc. (NYSE:DPZ), Papa John's International Inc. (NASDAQ:PZZA), Wingstop Inc. (NASDAQ:WING) and Yum China Holdings Inc. (NYSE:YUMC) according to the All-in-One Screener, a Premium feature of GuruFocus.


DoorDash boosts equity valuation to $16 billion as coronavirus continues trampling the globe

As Covid-19 cases around the globe exceed 8.5 million according to Johns Hopkins University statistics, DoorDash secured on Friday $400 million in equity capital through sales of shares to mutual funds like T. Rowe Price Group Inc. (NASDAQ:TROW) and Fidelity, boosting the food-delivery company's equity valuation to approximately $16 billion. According to data-research platform Edison Trends, DoorDash took a 45% market share of food-delivery transactions in April, besting Uber Inc. (NYSE:UBER) subsidiary UberEats' 28% market share.

Edison Trends also reported that food-delivery industry sales increased over 51% since March as governments worldwide enacted shelter-in-place orders to curtail the spread of the coronavirus.

As such, investors might seek opportunities in restaurants with food-delivery capabilities. The All-in-One Screener listed six restaurants that have outperformed the S&P 500 by at least 10% over the past six months.

Chipotle

Chipotle, a major holding of Bill Ackman (Trades, Portfolio)'s Pershing Square, outperformed the S&P 500 by approximately 28.56% over the past six months.

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The Newport Beach, California-based company operates fast-casual restaurants that serve burritos, tacos, bowls and salads. GuruFocus ranks Chipotle's profitability 8 out of 10 on several positive investing signs, which include a three-year revenue growth rate and a return on equity that it outperforming over 85% of global competitors.

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Other gurus with holdings in Chipotle include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Spiros Segalas (Trades, Portfolio).

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Domino's Pizza

Domino's Pizza has outperformed the S&P 500 by approximately 36.64% over the past six months.

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The Ann Arbor, Michigan-based company franchises stores that engage in quick-service pizza. GuruFocus ranks the company's profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a three-star business predictability rank and profit margins that are outperforming over 90% of global competitors.

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Papa John's

Papa John's has outperformed the S&P 500 by approximately 36.55% over the past six months.

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Like Domino's, Papa John's also franchises pizza delivery and carryout restaurants. According to GuruFocus, the Louisville, Kentucky-based company has a moderately strong Piotroski F-score of 6 despite margins and returns underperforming over 52% of global competitors.

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Wingstop

Wingstop has outperformed the S&P 500 by approximately 46.58% over the past six months.

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Wingstop operates and franchises stores that specialize in selling chicken wings in a wide range of flavors. GuruFocus ranks the Dallas-based company's profitability 8 out of 10 on the back of profit margins outperforming over 88% of global competitors and a three-year revenue growth rate near a 10-year high of 24.60%.

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Yum China

Yum China has outperformed the S&P 500 by approximately 10.29% over the past six months.

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The Shanghai-based company operates and franchises restaurants across China through brands like Pizza Hut, Little Sheep, East Dawning and Taco Bell. GuruFocus ranks the company's profitability 6 out of 10: Three-year revenue and earnings growth rates are outperforming just over 61% of global competitors despite expanding operating margins and returns outperforming over 85% of global restaurants.

Disclosure: No positions.

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This article first appeared on GuruFocus.