Yahoo Finance The Zacks Analyst Blog Highlights CAVA, Brinker International, Wingstop and Texas Roadhouse
For Immediate Release
Chicago, IL – May 30, 2024 – 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: CAVA Group, Inc. CAVA, Brinker International, Inc. EAT, Wingstop Inc. WING and Texas Roadhouse, Inc. TXRH.
Here are highlights from Wednesday’s Analyst Blog:
4 Solid Restaurant Stocks to Buy on Growing Sales
The U.S. restaurant industry staged a solid turnaround in 2023 and sales have since been on the rise. The uptrend continues despite rising price pressures and growing concerns over inflation.
The Commerce Department reported that sales at U.S. food and drinking places totaled $94.3 billion in April, up 5.5% year over year. Sales from February through April totaled $ 36.7 billion.
The retail sector has been struggling to bounce back from its lows, but sales at restaurants and bars have so far put up an impressive show amid price pressures.
Inflation rose in the first three months of the year but that didn't stop Americans from eating out. The consumer price index rose 0.3% month over month in April which came in below the consensus estimate of a rise of 0.4%.
Year over year, CPI jumped 3.4%, in line with the estimates. Core CPI, which excludes the volatile food and energy prices, rose 3.6% in April on a year-over-year basis and 0.3% sequentially, both in line with estimates.
The core year-over-year CPI reading is the lowest since April 2021, while the month-over-month figure increased at its slowest pace since December.
The rise in restaurant sales is being fueled by strong consumer spending and a boost in personal income.
Also, cooling inflation has once again raised hopes that the Fed could soon start its interest rate cuts. Lower interest rates bode well for the restaurant industry as it will give consumers more spending power.
Our Picks
We have narrowed our search to four restaurant stocks such as CAVA Group, Inc., Brinker International, Inc., Wingstop Inc. and Texas Roadhouse, Inc., which have strong potential for 2024.
These stocks have seen positive earnings estimate revisions in the last 60 days. Each of the stocks has a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
CAVA Group, Inc. is a category-defining Mediterranean fast-casual restaurant brand, which brings heart, health and humanity to food. CAVA is based in Washington.
CAVA Group's expected earnings growth rate for the current year is 19.1%. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the past 60 days. CAVA currently has a Zacks Rank #2.
Brinker International, Inc. primarily owns, operates, develops and franchises various restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands. EAT took over Chili's, Inc., a Texas corporation, in September 1983 and completed the acquisition of Maggiano's in August 1995. Chili's is a preeminent leader in the bar & grill category of casual dining. The brand has been functioning for over the last 40 years.
Brinker International's expected earnings growth rate for the current year is 39.2%. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the past 60 days. EAT currently sports a Zacks Rank #1.
Wingstop Inc. franchises and operates restaurants. WING operates through the Franchise segment and the Company segment. Wingstop offers cooked-to-order, hand-sauced and tossed chicken wings.
Wingstop's expected earnings growth rate for the current year is 36.7%. The Zacks Consensus Estimate for current-year earnings has improved 12.4% over the past 60 days. WING currently sports a Zacks Rank #1.
Texas Roadhouse, Inc. 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. TXRH operates restaurants under the Texas Roadhouse and Aspen Creek names. Texas Roadhouse also offers its guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork and vegetable plates, an assortment of hamburgers, salads and sandwiches.
Texas Roadhouse's expected earnings growth rate for the current year is 31.3%. The Zacks Consensus Estimate for current-year earnings has improved 4.9% over the past 60 days. TXRH presently carries a Zacks Rank #1.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
CAVA Group, Inc. (CAVA) : Free Stock Analysis Report
