If you just look at McDonald's, you'd think all S&P 500 restaurant stocks are stale. But that's far from the case.
Shares of six restaurant stocks in the S&P 1500 or S&P 500 indexes — including Brinker International, Wingstop and Chipotle Mexican Grill — are up by 10% or more this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That's dramatically better than McDonald's disappointing 11% stock drop this year.
Where's The Beef?
Brinker, the operator of Chili's Grill & Bar, is the restaurant stock to beat. It's up more than 50% this year.
Investors are gearing up for a huge 2024. The company's profit is seen jumping more than 46% to $4.14 a share. Additionally, Brinker's revenue is predicted to surge more than 5% to $4.4 billion.
That's a stark contrast with McDonald's. The company's June-quarter results missed views by 3%. And for the year, profit per share is seen falling slightly despite more than 3% higher revenue of $26.4 billion.
Wingstop, Chipotle Take Off
Chipotle is the top-performing restaurant stock in the S&P 500. It's up more than 11% this year. It's a growth story all around. The company's adjusted profit is expected to rise more than 20% this year. And revenue is forecast to jump nearly 15% to $11.3 billion in 2024.
Wingstop, a midsize company, has seen its shares rise more than 42% this year. It's another growth story. Analysts think the company's profit per share will rise more than 22% this fiscal year on nearly 17% higher revenue.
So don't read too much into McDonald's soggy shares. Other restaurants are doing just fine.
Top S&P 1500 Restaurant Stocks This Year
| Company | Ticker | YTD change |
|---|---|---|
| Brinker | EAT | 50.5% |
| Wingstop | WING | 42.7% |
| Texas Roadhouse | TXRH | 41.5% |
| Aramark | ARMK | 20.5% |
| Shake Shack | SHAK | 12.1% |
| Chipotle Mexican Grill | CMG | 11.3% |
