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The Zacks Analyst Blog Highlights: Bloomin' Brands, Chuy's Holdings, Dine Brands Global, Texas Roadhouse and Ruth's Hospitality
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For Immediate Release
Chicago, IL – June 29, 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: Bloomin’ Brands, Inc. (BLMN - Free Report) , Chuy’s Holdings, Inc. (CHUY - Free Report) , Dine Brands Global, Inc. (DIN - Free Report) , Texas Roadhouse, Inc. (TXRH - Free Report) and Ruth's Hospitality Group, Inc. .
Here are highlights from Monday’s Analyst Blog:
5 Stocks to Buy as Restaurant Sales Bounce Back
The restaurant industry seems to be finally getting back on its feet, with sales rebounding to the pre-pandemic levels as more people dine out. Also, people are shelling out more, with the new round of fiscal stimulus giving them more spending power.
Although retail sales declined in May, sales at bars and restaurants surprisingly gained.This is primarily because people have lately been spending less on goods and more on services. Hiring too has been on the rise at restaurants and bars.
Restaurant Sales Bouncing Back
Sales at U.S. restaurants and bars reached $67.3 billion in May, increasing for the third month in a row, according to Census Bureau Statistics. The 1.8% jump in May sales is the highest since January 2020, when sales had reached $66.3 billion.
On a year-over-year basis, sales increased 70.6%. Last year, following the pandemic, sales declined more than 55% as the country went under lockdown, and restaurants and other businesses had to be shut down.
Also, people started spending more on essential goods that further hampered sales at restaurants and bars. Job losses due to the pandemic made people more cautious and robbed them of their spending power. That said, sales have been rebounding for the past three months, not only raising hopes but also indicating that the industry is finally rebounding.
The growth in restaurant sales comes despite a decline in overall retail sales but that is because people are lately spending more on services than goods.
Restaurant Industry Poised to Grow
People who had been avoiding restaurants and bars for fear of contracting the COVID-19 virus are finally showing more courage and confidence in stepping out, thanks to the massive vaccination drive.
Also, new cases of coronavirus infections are on the decline, leading the government to ease restrictions and reopen the economy faster than expected. This has led people to visit restaurants and bars, thus pushing sales once again.
Besides, the new round of stimulus checks from President Joe Biden's $1.9 trillion coronavirus relief aid has given people more purchasing power.
According to a Restaurant Business Online article, citing a report by the National Restaurant Association, U.S. restaurant sales are fast bouncing back to normal after declining 19.2% in 2020, which was also the most challenging year for the industry.
Also, reopening of the restaurant industry has led to a hiring spree. In the coming days, as more get vaccinated and restrictions further ease, business will boom.
Our Choices
Given the situation, it makes good sense to invest in restaurant stocks. We have handpicked stocks of five restaurant players, 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.
Bloomin’ Brands is a casual dining restaurant company with a portfolio of differentiated restaurant concepts. It has five concepts: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar and Roy's.
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 78.3% over the past 60 days. The company sports a Zacks Rank #1.
Chuy’s Holdings owns and operates full-service restaurants serving a distinct menu of authentic Mexican food. The company offers a menu that includes appetizers, soups and salads, tacos, burritos, enchiladas, fajitas and combination platters.
The company's expected earnings growth rate for the current year is 82.1%. The Zacks Consensus Estimate for current-year earnings has improved 36.6% over the past 60 days. Chuys Holdings sports a Zacks Rank #1.
Dine Brands Global is a full-service dining company. It operates and franchises restaurants under both the Applebee's Neighborhood Grill & Bar and IHOP brands.
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 35.2% over the past 60 days. The company carries a Zacks Rank #1.
Texas Roadhouse is a full-service, casual dining restaurant chain, which offers assorted seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills.
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 35.3% over the past 60 days. The company sports a Zacks Rank #1.
Ruth's Hospitality Group is the largest fine dining steakhouse company in the United States as measured by the total number of company-owned and franchisee-owned restaurants, with over 150 Ruth's Chris Steak House locations worldwide.
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 82.8% over the past 60 days. The company has a Zacks Rank #2.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the "Internet of Money" and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we're still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks' has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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.
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The Zacks Analyst Blog Highlights: Bloomin' Brands, Chuy's Holdings, Dine Brands Global, Texas Roadhouse and Ruth's Hospitality
For Immediate Release
Chicago, IL – June 29, 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: Bloomin’ Brands, Inc. (BLMN - Free Report) , Chuy’s Holdings, Inc. (CHUY - Free Report) , Dine Brands Global, Inc. (DIN - Free Report) , Texas Roadhouse, Inc. (TXRH - Free Report) and Ruth's Hospitality Group, Inc. .
Here are highlights from Monday’s Analyst Blog:
5 Stocks to Buy as Restaurant Sales Bounce Back
The restaurant industry seems to be finally getting back on its feet, with sales rebounding to the pre-pandemic levels as more people dine out. Also, people are shelling out more, with the new round of fiscal stimulus giving them more spending power.
Although retail sales declined in May, sales at bars and restaurants surprisingly gained.This is primarily because people have lately been spending less on goods and more on services. Hiring too has been on the rise at restaurants and bars.
Restaurant Sales Bouncing Back
Sales at U.S. restaurants and bars reached $67.3 billion in May, increasing for the third month in a row, according to Census Bureau Statistics. The 1.8% jump in May sales is the highest since January 2020, when sales had reached $66.3 billion.
On a year-over-year basis, sales increased 70.6%. Last year, following the pandemic, sales declined more than 55% as the country went under lockdown, and restaurants and other businesses had to be shut down.
Also, people started spending more on essential goods that further hampered sales at restaurants and bars. Job losses due to the pandemic made people more cautious and robbed them of their spending power. That said, sales have been rebounding for the past three months, not only raising hopes but also indicating that the industry is finally rebounding.
The growth in restaurant sales comes despite a decline in overall retail sales but that is because people are lately spending more on services than goods.
Restaurant Industry Poised to Grow
People who had been avoiding restaurants and bars for fear of contracting the COVID-19 virus are finally showing more courage and confidence in stepping out, thanks to the massive vaccination drive.
Also, new cases of coronavirus infections are on the decline, leading the government to ease restrictions and reopen the economy faster than expected. This has led people to visit restaurants and bars, thus pushing sales once again.
Besides, the new round of stimulus checks from President Joe Biden's $1.9 trillion coronavirus relief aid has given people more purchasing power.
According to a Restaurant Business Online article, citing a report by the National Restaurant Association, U.S. restaurant sales are fast bouncing back to normal after declining 19.2% in 2020, which was also the most challenging year for the industry.
Also, reopening of the restaurant industry has led to a hiring spree. In the coming days, as more get vaccinated and restrictions further ease, business will boom.
Our Choices
Given the situation, it makes good sense to invest in restaurant stocks. We have handpicked stocks of five restaurant players, 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.
Bloomin’ Brands is a casual dining restaurant company with a portfolio of differentiated restaurant concepts. It has five concepts: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar and Roy's.
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 78.3% over the past 60 days. The company sports a Zacks Rank #1.
Chuy’s Holdings owns and operates full-service restaurants serving a distinct menu of authentic Mexican food. The company offers a menu that includes appetizers, soups and salads, tacos, burritos, enchiladas, fajitas and combination platters.
The company's expected earnings growth rate for the current year is 82.1%. The Zacks Consensus Estimate for current-year earnings has improved 36.6% over the past 60 days. Chuys Holdings sports a Zacks Rank #1.
Dine Brands Global is a full-service dining company. It operates and franchises restaurants under both the Applebee's Neighborhood Grill & Bar and IHOP brands.
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 35.2% over the past 60 days. The company carries a Zacks Rank #1.
Texas Roadhouse is a full-service, casual dining restaurant chain, which offers assorted seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills.
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 35.3% over the past 60 days. The company sports a Zacks Rank #1.
Ruth's Hospitality Group is the largest fine dining steakhouse company in the United States as measured by the total number of company-owned and franchisee-owned restaurants, with over 150 Ruth's Chris Steak House locations worldwide.
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 82.8% over the past 60 days. The company has a Zacks Rank #2.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the "Internet of Money" and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we're still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks' has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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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.