The restaurant industry should be able to maintain its current operational levels as federal agencies race to curb the rapid spread of the COVID-19 Delta variant through vaccine booster shots. Because discretionary consumer spending remains strong, Wall Street analysts predict restaurant stocks The ONE Group Hospitality (NASDAQ:STKS), Del Taco Restaurants (NASDAQ:TACO), and Carrols Restaurant Group (NASDAQ:TAST) will gain more than 50% in price in the near term. So, let’s discuss these names.COVID-19 vaccination rates in the United States have risen significantly over the past few weeks as even hesitant people have now begun rushing to receive their vaccines amid the rapid spread of the COVID-19 Delta variant. Daily average doses administered rose 31% in the last week of July to 390,000 per day. Furthermore, the CDC issued recommendations to approve vaccine booster shots for vulnerable people on August 13.
With approximately 70% of the U.S. adult population at least partly inoculated to date, the restaurant industry is expected to remain operational despite the surging COVID-19 cases. Furthermore, strong consumer discretionary spending and pent-up demand should allow restaurants to maintain their current operational levels.
Given this backdrop, Wall Street analysts expect the prices of popular restaurant stocks The ONE Group Hospitality, Inc. (STKS), Del Taco Restaurants, Inc. (TACO), and Carrols Restaurant Group, Inc. (TAST) to rally by more than 50%.