U.S. markets close in 3 hours 20 minutes
  • S&P 500

    4,633.39
    +66.39 (+1.45%)
     
  • Dow 30

    34,849.75
    +366.03 (+1.06%)
     
  • Nasdaq

    15,714.42
    +176.73 (+1.14%)
     
  • Russell 2000

    2,235.18
    +36.27 (+1.65%)
     
  • Crude Oil

    67.23
    +1.05 (+1.59%)
     
  • Gold

    1,786.00
    +9.50 (+0.53%)
     
  • Silver

    22.50
    -0.32 (-1.38%)
     
  • EUR/USD

    1.1320
    -0.0019 (-0.17%)
     
  • 10-Yr Bond

    1.4630
    +0.0200 (+1.39%)
     
  • GBP/USD

    1.3310
    +0.0009 (+0.07%)
     
  • USD/JPY

    112.8730
    -0.3070 (-0.27%)
     
  • BTC-USD

    58,495.76
    +1,326.93 (+2.32%)
     
  • CMC Crypto 200

    1,490.12
    +21.04 (+1.43%)
     
  • FTSE 100

    7,168.68
    +109.23 (+1.55%)
     
  • Nikkei 225

    27,935.62
    +113.86 (+0.41%)
     

The Zacks Analyst Blog Highlights: Denny's, Darden Restaurants, Papa John's and Dave & Buster's Entertainment

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

For Immediate Release

Chicago, IL – October 20, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Denny’s Corp. DENN, Darden Restaurants, Inc. DRI, Papa John’s International, Inc. PZZA and Dave & Buster's Entertainment, Inc. PLAY.

Here are highlights from Tuesday’s Analyst Blog:

4 Solid Stocks to Buy on Higher September Restaurant Sales

The Delta variant of COVID-19 has been a cause of concern for the past couple of months but that hasn’t dented the confidence of people much. As the economy continues to reopen, people are confidently stepping out of their homes.

This has seen the restaurant industry gradually getting back on its feet, with sales growing. And with the holiday season around the corner, people are likely to plan vacations and eat out, which is further likely to help the restaurant industry.

Restaurant Sales Grow in September

The U.S. Census Bureau reported on Oct 15 that retail sales grew 0.7% in September. Spending rose almost across all sections, with restaurant sales growing 0.3% month over month in September. On a year-over-year basis, spending at food and drinking establishments jumped 29.5%.

The monthly rise might not be big given that many are still reeling under fears of the Delta variant of the virus. However, the industry seems on track for a steady recovery from the bad hit it took last year. That said, sales of food and beverages increased 0.7% month over month.

With millions vaccinated, restaurants are once again attracting footfall. In fact, despite a surge in COVID-19 cases during summer, sales skyrocketed. Consumer spending at restaurants jumped 32% in the second quarter of 2021 compared to a year ago, according to a separate report from the NPD Group. The third quarter too is likely to be impressive given that cases started declining during this period and the government also eased restrictions further.

Restaurant Industry Poised to Grow

According to a report from the National Restaurant Association (NRA) issued last month, the Delta variant could slow down the restaurant industry’s recovery to some extent but will still be higher than last year. The report mentions that annual sales at U.S. restaurants are expected to increase 19.7% from 2020 to $789 billion this year.

According to a Restaurant Business Online article, citing a report by the NRA, restaurant sales in the United States are bouncing back to normal after falling 19.2% last year, which was also the most challenging year for the industry.

Also, travel is on the rise with people planning vacations ahead of the holiday season. Thus, restaurant sales are likely to get a further boost in the coming months.

Our Choices

Given the situation, it would be ideal to invest in restaurant stocks. We have shortlisted five restaurant stocks, each carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Denny’s is one of the largest restaurant companies, operating moderately priced restaurants: Denny's, Hardee's, Quincy's, El Pollo Loco, Coco's and Carrows. 

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 4% over the past 60 days. Denny’s Corporation sports a Zacks Rank #1.

Darden Restaurants is one of the largest casual dining restaurant operators worldwide. The company has operations in the United States and Canada with more than 1,700 restaurants.

The company’s expected earnings growth rate for next year is 76.6%. The Zacks Consensus Estimate for current-year earnings improved 2.3% over the past 60 days. Darden Restaurants has a Zacks Rank #2.

Papa John’s operates and franchises pizza delivery and carryout restaurants in the United States and other specific international markets. Its dine-in and delivery restaurants operate under the brand name Papa John’s.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 0.6% over the past 60 days. It has a Zacks Rank #2.

Dave & Buster's Entertainment is a leading owner and operator of high-volume venues in North America that combine dining and entertainment for both adults and families.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 46.7% over the past 60 days. It has a Zacks Rank #2.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                          

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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
 
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
 
Denny's Corporation (DENN) : Free Stock Analysis Report
 
Papa John's International, Inc. (PZZA) : Free Stock Analysis Report
 
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.