The restaurant industry has been hit by the COVID-19 pandemic harder than most sectors over the past year, and many restaurant stocks were hit as well. Indoor dining was shut down in most of the country for at least part of the year, takeout hasn’t replaced the revenue from diners, and entertainment venues have been absolutely crushed.
Despite these general financial headwinds, some restaurant stocks have thrived. Chipotle Mexican Grill (NYSE: CMG) was one chain that seemed almost built for a pandemic, quickly shifting to takeout and delivery and actually growing through this tough time. For an idea of where the industry is headed, investors should keep a close watch on Chipotle’s revenue trends, whether or not Dave & Buster’s Entertainment (NASDAQ: PLAY) can recover its large group entertainment business, and when Ruth’s Hospitality Group (NASDAQ: RUTH) can lure high-end diners back.
These are three restaurant stocks to keep an eye on right now. Let’s discuss why.