The Zacks Analyst Blog Highlights Dutch Bros, Brinker International, Texas Roadhouse and The ONE Group

For Immediate ReleaseChicago, IL – October 25, 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: Dutch Bros Inc. BROS, Brinker International, Inc. EAT, Texas Roadhouse, Inc. TXRH and The ONE Group Hospitality, Inc. STKS.Here are highlights from Thursday’s Analyst Blog:4 Restaurant Stocks with Growth Potential as Sales SoarThe U.S. restaurant industry grew at a solid pace over the past two years despite major challenges from higher borrowing and raw material costs. Higher personal income has been one of the key reasons Americans have been spending lavishly on eating out.The Commerce Department reported earlier this month that restaurant sales showed impressive growth in September, boosting overall retail sales.Given the bright outlook, investing in restaurant stocks, such as Dutch Bros Inc., Brinker International, Inc.,Texas Roadhouse, Inc. and The ONE Group Hospitality, Inc., which have seen positive earnings estimate revisions along with a favorable Zacks Rank, will be a prudent choice.Restaurant Sales Soar in SeptemberThe Commerce Department reported last week that sales at U.S. bars and restaurants totaled $93.7 billion in September, increased a solid 5% from year-ago levels of $92.97 billion. For the nine months through September, restaurant sales totaled $855.4 billion.Higher prices have been posing a challenge for restaurant owners as budget-conscious consumers look for value for money. Quick-service restaurants (QSRs), particularly those emphasizing value, have thus shown resilience in this challenging environment.With budget-conscious consumers looking for affordable dining choices, the value-focused segments have become increasingly competitive. Brands are intensifying their promotional efforts and offering cost-saving deals to attract and keep customers.Industry players are thus gaining from robust demand for value-oriented products and competitive pricing strategies. Several restaurants have been focusing on promotional campaigns, strategic alliances, and introducing new products to keep their customers engaged.Fed Rate Cuts to Help Restaurant StocksThe Federal Reserve cut interest rates by 50 basis points last month after inflation showed a substantial decline for months. The Fed’s first interest rate cut since March 2020 comes after it hiked interest rates by 525 basis points to take it to a 23-year high in its bid to combat inflation.With price pressures now easing, the restaurant industry is poised to benefit in the near term as lower borrowing rates will help both owners and consumers. Market participants are now expecting two more 25-basis-point rate cuts this year, which would further ease price pressures and boost the restaurant industry.Top Restaurant Stock Picks We have narrowed our search to five restaurant stocks that have solid growth potential for the rest of 2024 and have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Dutch Bros Inc.Dutch Bros Inc. is an operator and franchisor of drive-thru shops that focus on serving high-quality, hand-crafted beverages with unparalleled speed and superior service.Dutch Bros’ expected earnings growth rate for the current year is 30%. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the past 90 days. BROS presently sports a Zacks Rank #1.Brinker InternationalBrinker 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 the last 40 years.Brinker International’s expected earnings growth rate for the current year is 15.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 90 days. EAT presently carries a Zacks Rank #2.Texas RoadhouseTexas 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’s expected earnings growth rate for the current year is 40.3%. The Zacks Consensus Estimate for current-year earnings has improved 4.9% over the past 90 days. TXRH presently sports a Zacks Rank #1.The ONE Group HospitalityThe ONE Group Hospitality, Inc. develops, manages and operates a portfolio of high-energy restaurants, lounges and bars. STKS also provides food and beverage hospitality solutions. The ONE Group Hospitality’s primary restaurant brand is STK, which is a steakhouse concept with locations in metropolitan cities throughout the United States and in London.The ONE Group Hospitality’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 15.9% over the past 90 days. STKS currently carries a Zacks Rank #2.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 ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 The ONE Group Hospitality, Inc. (STKS): Free Stock Analysis Report Dutch Bros Inc. (BROS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks