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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 is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.