3 Top Restaurant Stocks to Buy in February
As the 2020s begin, a new era is dawning for the restaurant industry. Mobile ordering, ghost kitchens (an operation with no dining room, set up for delivery only), and the delivery wars are creating a new dynamic for businesses to navigate, and not all players are adapting with the times -- even though money spent paying someone else to do the cooking is greater than ever before, exceeding spending at grocery stores in 2019.
That's nothing new, though. Food preparation has always been a fiercely competitive industry. For some restaurant stocks, rapid changes in consumer tastes mean lots of new business. Three brands that were built for 21st century-style eating out are Starbucks (NASDAQ: SBUX), Domino's Pizza (NYSE: DPZ), and Yum China (NYSE: YUMC).
Starbucks needs no introduction. The world's largest coffee chain and one of the largest restaurant brands is still very much in growth mode, especially in China where hundreds of new stores are opening every year. Even though Starbucks is facing new competition from China's own upstart -- Luckin Brands -- there is plenty of room for both companies to win. The country's 1.4 billion residents are still mostly tea drinkers, and coffee culture has a lot of open space to expand into in the years ahead.
Source Fool.com
