Restaurant Sales Grow As Economy Reopens: 4 Stocks To Buy

The economy is gradually reopening, and after taking a beating for almost two months, restaurants and cafes have finally started witnessing growth in sales. June was the second consecutive month that saw the second-straight month of growth in restaurant sales after a record low in April.

Also, many workers who were furloughed have started joining back, indicating that the industry has finally started showing some confidence. Although the United States has been witnessing a surge in coronavirus cases over the past couple of weeks, it is quite unlikely that the government will go for a shutdown again. This is a big relief for the restaurant industry.

Restaurant Sales Grow in June

Restaurant and foodservice sales totaled $47.4 billion in June, marking the second straight month of growth after sales hit a low of $30 million in April, according to the National Restaurant Association (NRA). Total restaurant sales in May were $39.5 billion. The jump in June comes after a dismal March and April when restaurants missed out on an expected $116 billion in total sales due to the coronavirus-induced lockdown.

June sales were primarily driven by the reopening of many states that saw people visiting cafes and restaurants. However, the month’s sales dropped more than 25% year over year, likely pushing the total shortfall for restaurants and foodservice sales to more than $145 billion over the last four months, according to the NRA.

Room for Further Growth Despite Second COVID-19 Wave

Fears of a second wave of coronavirus are making many skeptical but it is unlikely that the Fed will go for a complete shutdown of businesses. People are maintaining social distance and restaurants to are taking adequate measures keeping in mind the safety of customers and dinners. Although the number of seated diners in the United States is down 64.1% this year as of Jul 15 from the same period a year ago, many have been opting for online delivery.

Moreover, many restaurants are converting into drive-through only. Restaurants and cafes, which already have a strong online presence or have a takeaway and drive-through facilities, were comparatively less ruffled during the peak of infections.   

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