Restaurant Themes and Speed Dating the industry
This Friday, March 26, at 2 PM, I will be hosting a restaurant theme deck. The deck will include a new and updated best idealist. We will take a look at the current state of the restaurant industry and update our best ideas. We have commentary on nearly every major company in the industry and how it is currently positioned. DRI will likely set the tone for the balance of the year when it reports earnings on 3/25.
To add to your calendar Click Here.
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CLICK HERE to watch the webcast live and to access the associated slides (they will become available before the start of the presentation). Participating Dialing Instructions Toll Free: UK: 0 Confirmation #: 13717531 |
Many companies have executed digital advances during the pandemic to help with customer engagement. Some might say digital strengthens the entire industry, possibly even casual dining? Most players have learned the benefit of leveraging this now critical platform that improves consumer access and serves as an effective marketing and potential labor savings tool. As the theory goes, the more guests order on your app, the more extensive the email database, the less you need to spend on costly TV ads. Can you keep engagement at high levels though? In 2021, sales have softened versus January, but the looming sales surge as we exit March makes the current quarter more noise than usual.
Many stocks look extended versus traditional valuations, but will likely return to a more normalized environment as we exit 2021. We are looking for companies with attractive growth characteristics and those companies with a combination of good earnings visibility and discounted valuations. The latter being very difficult to find. Combined with the lapping the pandemic, same-store sales are expected to accelerate meaningfully for last year's pandemic losers. Some valuations reflect significant optimism about the demand to come from the economic reopening and the potential structural changes mentioned above, but is it real? How long will the enthusiasm last? The risks on the horizon come after the stimulus/reopening fades and investors' potential to shift to companies that can sustain operating momentum in 2022 and beyond.
More to come in the next few days.
