BTIG overviews of the restaurant industry Top 2020 trends, stock picks

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<p class = "Canvas-Atom-Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The dine-in Hospitality Overall, 2020 is likely to be a year of decline as the Olympic Games and the US presidential election will be significantly impacted by 2020 with notable distractions, including the Olympics and the US presidential election.

industry trends

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "During an election cycle, consumers usually stay with more often at home – as in 2016, BTIG analyst Peter Saleh wrote in a note. Should this trend repeat itself in 2020, this could benefit restaurants that offer take-out and delivery options. The same theory applies to the Olympic Games, which will take place this summer. "Data-reactid =" 20 "> Consumers tend to stay at home more often during an election cycle – as was the case in 2016, BTIG analyst Peter Saleh said in a note: If this trend were to repeat itself in 2020, it could this benefits restaurants that offer take-away and delivery options, and the same theory applies to the Olympics that will take place this summer.

In addition, restaurant operators will find it more expensive to advertise during the Olympics and throughout the presidential election cycle, the analyst wrote. This should result in the majority of restaurant operators having flat to negative target rating points. The metric is a measure of the likelihood that the audience will make a purchase.

Double down on pizza

Pizza supply chains are likely to benefit from consumers spending more time on their sofas watching the Olympics or getting the latest information about the presidential election. In fact, the 13 to 16 hour time difference from the Japan Summer Olympics is likely to help orders from national chains that deliver late into the night arrive faster with pizza delivery.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Papa John & # 39; s International, Inc. (NASDAQ: PZZA) is in the early stages of a turnaround and has a new team to drive growth in 2020, the analyst wrote. Leadership changes include CEO Rob Lynch, Chairman Jeff Smith and a strong brand ambassador in Shaquille O & # 39; Neal. "Data reactid =" 24 ">Papa John & # 39; s International, Inc. (NASDAQ: PZZA) is in the early stages of a turnaround and has a new team to drive growth in 2020, the analyst wrote. Leadership changes include CEO Rob Lynch, Chairman Jeff Smith and a strong brand ambassador in Shaquille O & # 39; Neal.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Further link: Restaurant business dishes what to look out for in 2020"data-reactid =" 25 ">Related Link: Restaurant business dishes what to look out for in 2020

The growth in sales in the same business for Dad John’s are driven by menu innovations and marketing expenses. These two initiatives are the two main drivers that are required for a restaurant shift.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "In the meantime Domino & # 39; s Pizza, Inc. (NYSE: DPZ) is still well positioned to gain global market share, invest in its own business, generate new skills and constantly return money to investors, the analyst wrote. "data-reactid =" 27 "> Domino & # 39; s Pizza, Inc. (NYSE: DPZ) is still well positioned to gain global market share, invest in its own business, generate new functions and continually return money to investors, the analyst wrote.

"We continue to see Domino as a global market share winner due to its digital capabilities, national value creation platform and continued unit growth," wrote Saleh.

Chipotle still spinning around

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Chipotle Mexican Grill, Inc. (NYSE: CMG) should see another year of improvement in unit economy and shareholder returns, Saleh also wrote. Continuous menu innovation remains a "significant driver" and the company has continued support through digital, loyalty, delivery and improved property selection. "Data reactid =" 30 ">Chipotle Mexican Grill, Inc. (NYSE: CMG) should see another year of improvement in the single economy alongside shareholder returns, Saleh also wrote. Continuous menu innovation remains a "significant driver" and the company has continued support through digital, loyalty, delivery and improved property selection.

Ratings and price targets

  • Saleh maintains a buying rating for Papa John’s, raising the price target from $ 67 to $ 75
  • Saleh maintains a buy rating for Domino's Pizza, with an unchanged price target of $ 325.
  • Saleh maintains a buy rating for Chipotles, raising its price target from $ 890 to $ 1,001. The analyst also names Chipotle as the "top choice" for 2020.

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Ordering pizza during the Olympics makes sense, but how much added value does late-night delivery bring to the chains? Also, hosting pizza parties during a presidential debate doesn't seem to be an important catalyst.

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