U.S. restaurant stocks shake off COVID-19 impact to finish 2021 strong

Dine Brands Global

31/12/2021 16:18

** U.S. restaurant stocks record a largely solid showing in
2021 even as the Delta and Omicron variants have posed a threat
to their recovery this year
    ** Domino's Pizza  DPZ.N , which is increasing for the 13th
straight year, leads the gains, jumping 45% this year, as of
last close, while it is the seventh year of gains for Pizza
Hut-owner Yum Brands  YUM.N 
    ** Chipotle Mexican Grill  CMG.N , Olive Garden-parent
Darden Restaurants  DRI.N  and Starbucks  SBUX.O  are also
extending their winning streak to between four years and nine
years
    ** Starbucks is brokerage Barclays' top pick for 2022,
according to a note from Dec. 15
    ** Barclays expects McDonald's  MCD.N , Wendy's  WEN.O ,
Applebee's-owner Dine Brands  DIN.N  and Burger King-parent
Restaurant Brands  QSR.N  to outperform in the beginning of
2022, with Darden and Outback Steakhouse-owner Bloomin' Brands
 BLMN.O  outperforming starting mid-2022
    ** However, the S&P 500 Restaurants  .SPLRCREST  is up
nearly 21% this year, underperforming the 27% increase in the
broader S&P 500  .SPX 
    ** Urban-centric Shake Shack  SHAK.N  snaps its four-year
winning run, while Chili's-parent Brinker International  EAT.N ,
which has missed earnings estimates for three straight quarters,
is declining the most among major restaurants
    
 Company                          RIC       2021   2020  Rating
 Domino's Pizza                    DPZ.N    45%    31%   Buy
 Dine Brands Global                DIN.N    33%    -31%  Buy
 Yum Brands                        YUM.N    28%    8%    Buy
 Chipotle Mexican Grill            CMG.N    26%    66%   Buy
 McDonald's                        MCD.N    25%    9%    Buy
 Darden Restaurants                DRI.N    25%    9%    Buy
 Starbucks                         SBUX.O   9%     22%   Buy
 Wendy's                           WEN.O    9%     -1%   Buy
 Denny's                           DENN.O   8%     -26%  Buy
 Restaurant Brands International   QSR.N    -1%    -4%   Buy
 Shake Shack                       SHAK.N   -14%   42%   Hold
 Brinker International             EAT.N    -35%   35%   Buy
 
 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))