It's no secret the food service industry was hit hard over the last year... After COVID-19 was dubbed a pandemic in early March, doors to restaurants around the country were shut for months on end. And though many are back up and running at limited capacity, others may never bounce back.
But for some well-established eateries, I'm expecting a full-scale recovery, and then some - a promising silver lining I'm tapping into on today's "Fast Profits with Money Morning"...
Today's Fast Profits trade is on a holding company housing some of the most recognizable restaurant franchises in America: like Outback Steakhouse, Bonefish, and Carrabba's.
Of course, this company was no exception to the pandemic, with comparable sales metrics down 55% to 69% in the first month of lockdowns alone. And one crucial decision made staying afloat even more difficult: not to furlough or lay off a single employee due to coronavirus restrictions.
But that decision, one many thought would be the end of today's "Fast Profits" stock, was largely responsible for its ongoing recovery.
Because after it was given the green light for preliminary reopenings, it had nearly a full work force to call upon, a huge advantage over competitors that jumped the gun on thinning out their payrolls.
And with over 1,400 locations across the country and long-established brand names to lean on, there's no better stock to play the returning casual dining experience.
This small-cap stock has been on the rise since the last quarter of 2020, and since the turn of the year, it's up nearly 30%. But that's nothing compared to where it's headed after announcing earnings TOMORROW before the opening bell.
So to help you make the most out of tomorrow's buying surge, I've put together this call options play. Just check out the video below for full details...
Trade details:
Action to Take No. 1: Buy shares of Bloomin' Brands Inc. (NASDAQ: BLMN) using a limit order of $23.25.
Action to Take No. 2: Buy to open BLMN July 16, 2021 $22.50 (BLMN210716C00022500) using a limit order of $4.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.