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Restaurant Brands: Further Weakness Should Present A Buying Opportunity

It's been a challenging year for the restaurant industry group which was up ~23% as of summer measured by the AdvisorShares Restaurant ETF (EATZ), but has since given up nearly all of its gains. This unfortunate trend change can be attributed to what continues to be a difficult macro environment for consumer discretionary, and what's become a more competitive environment for restaurants (elevated promotions) due to an overall decline in traffic. That said, while many names continue to make new lows like Portillo's (PTLO) and Denny's (DENN) after coming into the year with little margin of safety, Restaurant Brands (NYSE:QSR) has been an exception, making new all-time highs in July before pulling back recently.

seekingalpha.com     Oct 21, 2023