WING - 5 Restaurant Stocks to Buy on Strong Sales in March | Benzinga
U.S. restaurants continue to flourish in 2024 after impressive performances in the last two years. Restaurant sales were not impacted much despite severe inflationary pressure. The momentum is likely to continue for the rest of 2024.
Strong Restaurant Sales in March
The Department of Commerce reported that sales at U.S. bars and restaurants (adjusted for seasonal variation and holiday sales but not for price changes) came in at $93.7 billion in March, up 0.4% from February. Year over year, spending on restaurants and bars rose 6.5% in February.
The restaurant space is the primary driver of growth for overall retail sales. Steady consumer spending continued in the first three months of 2024 despite worries that the economy may enter a recession in the near term. Although higher interest rates concerned customers, they did not cut down on spending at restaurants and bars.
The Zacks-defined Retail – Restaurant Industry is currently in the top 41% of the Zacks Industry Rank. Since it is ranked in the top half of Zacks Ranked Industries, we expect the consulting services industry to outperform the market over the next three to six months.
Innovative Measures
The restaurant industry is gradually witnessing improving sales. The improvement can be attributed to the enhancement in fundamentals such as modifications in business processes, staffing, floor plans and technology.
Restaurant operators' focus on digital innovation, sales-building initiatives, and cost-saving efforts have been acting as major catalysts. With the growing influence of the Internet, digital innovation has become the need of the hour. Big restaurant chains are constantly partnering with delivery channels and digital platforms to drive incremental ...