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The Zacks Analyst Blog Highlights: Chuy's Holdings, Ruth's Hospitality, BJ's Restaurants and Jack in the Box
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For Immediate Release
Chicago, IL – May 26, 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: Chuy's Holdings, Inc. (CHUY - Free Report) , Ruth's Hospitality Group, Inc. , BJ's Restaurants, Inc. (BJRI - Free Report) and Jack in the Box Inc. (JACK - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Restaurant Industry Recovery On Track: 4 Stocks to Buy
The worst seems to be over for the restaurant industry. With the rollout of vaccines in full swing and restrictions being lifted, restaurant operators are witnessing pent-up demand for dine-in experience. Things now seem rosier for the restaurant industry.
People are starting to feel safer while venturing out, which is leading to more money being spent. Moreover, companies are resorting to hiring and retention of team members to support high volumes.
Meanwhile, the industry continues to show resilience on the back of increased investments in infrastructure and digital capabilities. Restaurant operators are of the opinion that focus on restructured marketing approach along with leveraged digital expertise is likely to boost consumer connect and traffic derivation. Moreover, restaurateurs are focusing on third-party delivery channels, digital innovation, website enhancements, virtual kitchens, mobile ordering and loyalty programs to drive growth during the current scenario.
Restaurant Sales Gains in April
Per a study by the industry body National Restaurant Association, the latest Census Bureau report revealed that the restaurant & bars industry generated $64.9 billion sales in April on a seasonally-adjusted basis. Sales increased 3% sequentially and was more than double year over year. Notably, sales rose 2% from April 2019 levels. This was the third solid increase in total sales in the last four months.
The National Restaurant Association reported that the restaurant & bars industry added 187,000 manpower in April on a seasonally-adjusted basis, marking the fourth consecutive month of payroll growth.
Off-Premise Business Model: A Driving Factor
Given that the industry players are witnessing solid sales on the back of its off-premise offerings, most restaurant operators have initiated the testing of ghost or virtual kitchens. Notably, positive customer feedback is being registered on the idea of providing off-premise offerings along with a connected curbside service. As dining room traffic increases, off-premise businesses are likely to hold strong.
Meanwhile, restaurant operators are continuously coming up with new ideas to keep their businesses afloat. This includes expansion of seating capacity at both indoor dining rooms and outdoor seating, installation of breathable panels and roll-out of subscription paid services.
Our Take
We believe that the consumers' increased demand for convenience will continue post-pandemic. Nonetheless, we expect to see stronger dining rooms, takeout and delivery businesses compared with pre-pandemic levels. Yet, timing for things to normalize remains vital.
Investing in the retail sector might sound profitable right now, it is worth noting that the Zacks Retail – Restaurants industry is currently at the top 35% (with the rank of 87) of the 251 Zacks industries, which hints at further growth.
Here, we have highlighted four stocks that are likely to witness earnings growth in 2021 buoyed by robust sales-building initiatives.
4 Restaurant Stocks to Watch Out For
Given the backdrop, here are four restaurant stocks that are likely to move higher in 2021. With the help of the Zacks Stock Screener, we have zeroed in stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). These companies have witnessed a sharp rise in the past six months. You can see the complete list of today's Zacks #1 Rank stocks here.
Chuy's Holdings is a fast-growing, full-service restaurant concept offering a distinct menu of authentic, Mexican food. Shares of this Zacks Rank #1 company have surged 72.6% in the past six months.
Notably, the company has been gaining from its focus on cost management and operating efficiencies. Also, its initiative toward pay at the table solutions, such as QR code payment and other tech solutions are encouraging.
Meanwhile, the Zacks Consensus Estimate for its 2021 earnings has been revised 29.5% upward in the past 60 days. The consensus mark for its 2021 earnings also indicates an improvement of 72.6% year over year.
Ruth's Hospitality Group along with its subsidiaries develops, operates and franchises fine dining restaurants under the Ruth's Chris Steak House name in the United States. Shares of this Zacks Rank #2 company have gained 49.3% in the past six months, courtesy of its operational adjustments.
The Zacks Consensus Estimate for 2021 earnings has been revised 55.2% upward in the past 60 days. The consensus mark for 2021 earnings indicates an improvement of 336.8% year over year.
BJ's Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. Shares of the Zacks Rank #2 company have gained 55.1% in the past six months. The company has been aggressively trying to make its off-premise offerings more appealing to customers and more efficient for restaurants in order to drive digital sales and customer retention. Backed with positive customer engagement, the company expanded its virtual brand — slow roast. Also, it is receiving positive momentum with respect to the beer subscription service. The Zacks Consensus Estimate for its 2021 earnings has been revised 178.3% upward in the past 60 days. The Consensus mark for its 2021 earnings also indicates an improvement of 114.7% year over year.
Jack in the Box is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants. Shares of the Zacks Rank #2 company have gained 26.7% in the past six months, courtesy of product innovation strategies. Jack in the Box continues to focus on expansion initiatives and digital marketing technology platform.
To this end, the company partnered with Reef Kitchen's to open eight ghost kitchens in three states. The Zacks Consensus Estimate for its 2021 earnings has been revised 5.6% upward in the past 60 days. The Consensus mark for its 2021 earnings also indicates an improvement of 45% year over year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have 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: Chuy's Holdings, Ruth's Hospitality, BJ's Restaurants and Jack in the Box
For Immediate Release
Chicago, IL – May 26, 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: Chuy's Holdings, Inc. (CHUY - Free Report) , Ruth's Hospitality Group, Inc. , BJ's Restaurants, Inc. (BJRI - Free Report) and Jack in the Box Inc. (JACK - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Restaurant Industry Recovery On Track: 4 Stocks to Buy
The worst seems to be over for the restaurant industry. With the rollout of vaccines in full swing and restrictions being lifted, restaurant operators are witnessing pent-up demand for dine-in experience. Things now seem rosier for the restaurant industry.
People are starting to feel safer while venturing out, which is leading to more money being spent. Moreover, companies are resorting to hiring and retention of team members to support high volumes.
Meanwhile, the industry continues to show resilience on the back of increased investments in infrastructure and digital capabilities. Restaurant operators are of the opinion that focus on restructured marketing approach along with leveraged digital expertise is likely to boost consumer connect and traffic derivation. Moreover, restaurateurs are focusing on third-party delivery channels, digital innovation, website enhancements, virtual kitchens, mobile ordering and loyalty programs to drive growth during the current scenario.
Restaurant Sales Gains in April
Per a study by the industry body National Restaurant Association, the latest Census Bureau report revealed that the restaurant & bars industry generated $64.9 billion sales in April on a seasonally-adjusted basis. Sales increased 3% sequentially and was more than double year over year. Notably, sales rose 2% from April 2019 levels. This was the third solid increase in total sales in the last four months.
The National Restaurant Association reported that the restaurant & bars industry added 187,000 manpower in April on a seasonally-adjusted basis, marking the fourth consecutive month of payroll growth.
Off-Premise Business Model: A Driving Factor
Given that the industry players are witnessing solid sales on the back of its off-premise offerings, most restaurant operators have initiated the testing of ghost or virtual kitchens. Notably, positive customer feedback is being registered on the idea of providing off-premise offerings along with a connected curbside service. As dining room traffic increases, off-premise businesses are likely to hold strong.
Meanwhile, restaurant operators are continuously coming up with new ideas to keep their businesses afloat. This includes expansion of seating capacity at both indoor dining rooms and outdoor seating, installation of breathable panels and roll-out of subscription paid services.
Our Take
We believe that the consumers' increased demand for convenience will continue post-pandemic. Nonetheless, we expect to see stronger dining rooms, takeout and delivery businesses compared with pre-pandemic levels. Yet, timing for things to normalize remains vital.
Investing in the retail sector might sound profitable right now, it is worth noting that the Zacks Retail – Restaurants industry is currently at the top 35% (with the rank of 87) of the 251 Zacks industries, which hints at further growth.
Here, we have highlighted four stocks that are likely to witness earnings growth in 2021 buoyed by robust sales-building initiatives.
4 Restaurant Stocks to Watch Out For
Given the backdrop, here are four restaurant stocks that are likely to move higher in 2021. With the help of the Zacks Stock Screener, we have zeroed in stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). These companies have witnessed a sharp rise in the past six months. You can see the complete list of today's Zacks #1 Rank stocks here.
Chuy's Holdings is a fast-growing, full-service restaurant concept offering a distinct menu of authentic, Mexican food. Shares of this Zacks Rank #1 company have surged 72.6% in the past six months.
Notably, the company has been gaining from its focus on cost management and operating efficiencies. Also, its initiative toward pay at the table solutions, such as QR code payment and other tech solutions are encouraging.
Meanwhile, the Zacks Consensus Estimate for its 2021 earnings has been revised 29.5% upward in the past 60 days. The consensus mark for its 2021 earnings also indicates an improvement of 72.6% year over year.
Ruth's Hospitality Group along with its subsidiaries develops, operates and franchises fine dining restaurants under the Ruth's Chris Steak House name in the United States. Shares of this Zacks Rank #2 company have gained 49.3% in the past six months, courtesy of its operational adjustments.
The Zacks Consensus Estimate for 2021 earnings has been revised 55.2% upward in the past 60 days. The consensus mark for 2021 earnings indicates an improvement of 336.8% year over year.
BJ's Restaurants owns and operates a chain of high-end casual dining restaurants in the United States. Shares of the Zacks Rank #2 company have gained 55.1% in the past six months. The company has been aggressively trying to make its off-premise offerings more appealing to customers and more efficient for restaurants in order to drive digital sales and customer retention. Backed with positive customer engagement, the company expanded its virtual brand — slow roast. Also, it is receiving positive momentum with respect to the beer subscription service. The Zacks Consensus Estimate for its 2021 earnings has been revised 178.3% upward in the past 60 days. The Consensus mark for its 2021 earnings also indicates an improvement of 114.7% year over year.
Jack in the Box is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants. Shares of the Zacks Rank #2 company have gained 26.7% in the past six months, courtesy of product innovation strategies. Jack in the Box continues to focus on expansion initiatives and digital marketing technology platform.
To this end, the company partnered with Reef Kitchen's to open eight ghost kitchens in three states. The Zacks Consensus Estimate for its 2021 earnings has been revised 5.6% upward in the past 60 days. The Consensus mark for its 2021 earnings also indicates an improvement of 45% year over year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have 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.