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The August pullback in the stock market has created a number of buying opportunities for long-term investors. From retail to chipmakers, from the firms that pull oil out of the ground to the companies that refine them, investors have the chance to buy great companies on the dip.
But there's one sector that took a few hits this month that now has great short-term and even greater long-term potential…
Restaurant stocks are poised for big growth in the year ahead.
New menu and technology innovations, changing customer demographics, and the growth of delivery services make restaurants an intriguing industry for the next 12 months.
Since their IPOs, the top pot stocks on the market have seen windfalls upwards of 1,700%, 3,800%, even 5,800%. Everywhere you look, people are making a fortune off this agribusiness boom. And you can, too. Click here…
There are many restaurant stocks to choose from in this market. So, to find the best, I turned to the Money Morning Stock VQScore™ system. This proprietary algorithm tracks more than 1,500 profitable companies and assigns them a score from 1 to 4.9.
The higher the VQScore – which is derived from a deep dive into the company's fundamental numbers and technical indicators – the more likely the company is to break out in the months ahead.
Restaurant Trends Are Changing
Today's American consumers are changing.
No longer are they satisfied to go out to dinner after a long week of work. Nor are younger Americans cooking at home with the same vigor of previous generations.
Meanwhile, chain restaurants continue see their market share erode.
In their place has been an alarming trend: the rise of digital ordering and home delivery. Industry reports show that delivery accounts for 5% to 10% of all orders.
In fact, the NPD Group said that digital restaurant orders have increased by a clip of 23% each year since 2013. By 2020, they expect that volumes will have tripled during that period.
Smartphone and mobile app orders are expected to become a $38 billion industry, and they will account for 11% of all quick service restaurant sales by next year, according to Business Insider Intelligence.
With restaurant companies focusing on quality and putting a premium on speed, I want to tap into that trend and find a stock that can get us huge gains in the year ahead.
And there's one firm that stands out above the rest.
The company behind the very first 30-minute guarantee on delivery.
Let's dive into the best restaurant stock to buy today…
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.