With consumer confidence showing some signs of life, a few select restaurant and eatery stocks are looking to benefit. As more Americans resume eating out instead of cooking at home, some of these companies will benefit.
I watch more than 5,000 publicly traded companies with my tool, ranking companies by a number of fundamental and quantitative measures. And this week, we’ve found four high-growth restaurant stocks to buy.
Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.” Here they are:
McDonald’s (NYSE:) is perhaps the most well-known fast-food chain in the world. In the last year, McDonald’s stock has posted a gain of 34%, compared to a gain of 11% for the Dow Jones in the same time. MCD stock gets a “B” grade for earnings growth and an “A” grade for return on equity. .
Starbucks (NASDAQ:) operates an international chain of specialty-coffee restaurants. SBUX stock has posted a gain of 54% since this time last year. Starbucks stock gets a “B” grade for sales growth, a “B” grade for operating margin growth, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. .
Yum! Brands
(NYSE:) is known for owning the chains KFC, Pizza Hut and Taco Bell. Since last March, YUM stock has jumped 38%. YUM stock gets a “B” grade for sales growth, a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. .
Chipotle (NYSE:) operates more than 1,200 Mexican restaurants predominantly in the U.S. Chipotle stock has gained 67% in the last year, compared to smaller gains by the broader markets. CMG stock gets a “B” grade for sales growth, a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow and a “B” grade for return on equity. .
