2 Upgraded Restaurant Stocks to Buy Now By StockNews
The restaurant industry is gaining traction with rising foot traffic and improving delivery chains, and the National Restaurant Association recently reported a positive outlook for the industry. We believe restaurant stocks Ruth’s Hospitality and The ONE Group, which have solid financial records, are good investments now. These stocks were also upgraded by Nicole Miller Regan, a Piper Sandler analyst. Continue reading. The restaurant industry faced many operational problems over the past year. To address these challenges, Piper Sandler analyst Nicole Miller Regan upgraded the stocks to Overweight from Neutral. Restaurants have seen an increase in foot traffic since this year’s beginning due to the rapid vaccination rollout, and subsequent relaxation of social distancing requirements.
A recent National Restaurant Association report shows that food and beverages sales in restaurants and foodservice will rise 19.7% to $789Billion in 2021.
Given the industry’s solid growth prospects, we think fundamentally sound stocks in this space Ruth’s Hospitality Group, Inc. (RUTH) and The ONE Group Hospitality, Inc. (NASDAQ:) could be solid bets now. Nicole Miller Regan from Piper Sandler has elevated RUTH to Overweight, replacing Neutral. She also set a $28 price target. Regan stated that the company’s “balanced customer positioning across social media, local businesses and special occasions”. Regan raised STKS’s weight from Neutral and set a $17 price goal. The analyst sees the company’s potential for multiple expansion and believes it can leverage accelerated global development opportunities.
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