Ranked: The Performance Of Restaurant Stocks On The NYSE

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Restaurant stocks LTM performance

Restaurant Stocks on the NYSE

Restaurants, arguably more than other industries, have had to adjust swiftly to a new and unrecognizable landscape during the pandemic. And the level of preparedness towards adverse and unpredictable conditions reflects in the last 12 month (LTM) stock price performance of the 18 restaurant stocks on the NYSE.

The performance for this basket of stocks ranges from a high of 90% to a low of -21%. The companies that have rewarded shareholders are at the forefront of industry trends, doubling down on a digital ecosystem through concepts like membership programs, ghost kitchens, delivery, and mobile sales.

Winners and Losers

The vast division of stock price performance has a David and Goliath component to it in that the larger companies with deeper pockets have had the ability to invest in modern initiatives.

The top five performing stocks have an average market cap of $14 billion, while the bottom five possess an average of $630 million.

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Source: Top Foreign Stocks

Note: Data is as of March 1, 2021

Digital Haves and Have Nots

The same types of initiatives appear to be paying off, especially for the biggest winners.

Dine-in Drought

Those in the negative territory have not had the same good fortune. They tend to be sit-down establishments suffering from drastic falls in foot traffic.

Without a pre-existing digital presence to reach customers, sales run the risk of taking a nosedive. Hospitality workers are among those hardest hit by the pandemic, and a lack of demand for hospitality labor again points to the dire circumstances for some sit-down restaurants.

Delivery Mania

For the food industry, the fall in foot traffic is partially offset by the rise in food delivery. Pure play companies in the food delivery space like DoorDash and Grubhub have fared well. Grubhub reported 622,700 Daily Average Grubs (daily deliveries) in 2020, up from 492,300 from the year prior. And for Uber, growth in the delivery segment of their business has buoyed the decline in ride-hailing.

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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William K. 1 month ago Member's comment

Certainly those already in the take-out business only had to make smaller adjustments, while sit-down dining is almost non-existent. The issuing of government closure orders has certainly done some serious damage, and the government response has been random.

The fact that some are still prospering suggests that some business models work very well, with some product offerings.

Unfortunately the road to recovery will be littered with those who do not make it.