9 Food and Restaurant Stocks to Dine In On

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With a booming economy, one of the natural places for people seeking growth opportunities are food and restaurant stocks. Under belt-tightening conditions, you’ll typically see more demand for discount-centric businesses. But as it stands, the headline numbers are positive — bolstering the case for the wider restaurant industry. That said, I’d be remiss not to mention the inherent risks of the coronavirus from China. At the latest count — and this will surely change for the worse – over 60,000 cases are confirmed, with at least 1,300 dead. Moreover, business consultancy firm Bain & Co. estimates that China’s GDP for this year could be negatively impacted to the tune of $43 billion to $72 billion. Obviously, that’s not the greatest news for restaurant stocks, especially those with exposure to China. On the flipside, food and restaurant stocks benefit from demographic realities. According to the Pew Research Center, millennials represent the largest generation in the workforce. While they may not be the richest generation — that still belongs to the baby boomers — they have cash flow due to their employment status. As studies have shown, just their presence alone is creating changes in the food-service industry. Further, experts in the space predict that millennials will be the biggest food and beverage spenders within a decade. So, while the coronavirus presents an immediate threat, restaurant stocks are riding a much longer-term bullish wave. Plus, fears about the coronavirus may offer discounted opportunities in various food stocks. At some point, health officials will get a hold of the crisis. And when they do, the narrative will presumably shift positively.

So, with that in mind, here are nine food and restaurant stocks to buy that investors should dine in on.