Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Delivery surge expected to reset the restaurant industry

Published 06/26/2017, 08:13 AM
© Reuters. Delivery surge expected to reset the restaurant industry
  • Morgan Stanley (NYSE:MS) says digital restaurant delivery is surging as it warns on the casual dining sector. The analyst team relies on the latest AlphaWise survey in making its assessment. The bear case scenario is lowered on BJ's Restaurants (NASDAQ:BJRI), Bloomin' Brands (NASDAQ:BLMN), Buffalo Wild Wings (NASDAQ:BWLD), Cheesecake Factory (NASDAQ:CAKE), Brinker International (NYSE:EAT), DineEquity (NYSE:DRI) and Red Robin Gourmet Burgers (NASDAQ:RRGB) due to the impact on margins of the delivery trend.
  • The outlook is different for the fast-food sector as the investment firm factors in the less cannibalistic impact of delivery on sales. Incremental benefits from an increase in delivery in the future are seen for Chipotle (NYSE:CMG), Dunkin' Brands (NASDAQ:DNKN), Jack In The Box (NASDAQ:JACK), El Pollo Loco (NASDAQ:LOCO), McDonald's (NYSE:MCD), Noodles (NASDAQ:NDLS), Restaurant Brands International (NYSE:QSR), Starbucks (NASDAQ:SBUX), Shake Shack (NYSE:SHAK), Wendy's (NYSE:WEN), Wingstop (NASDAQ:WING) and Yum Brands (NYSE:YUM).
  • Despite the surge in delivery, Grubhub (NYSE:GRUB) is downgraded to Equalweight from Overweight due to increase competiton from Uber (Private:UBER) and Amazon (NASDAQ:AMZN).
  • "We note our Alphawise data show UberEats is gaining traction too with a 800bp increase in user adoption (now at 10%). Our Amazon Restaurant Delivery math also shows how a scaled restaurants business could subsidize 1-hour PrimeNow Delivery," notes MS.
  • Sources: Bloomberg and StreetInsider.com
  • Previously: Amazon seen making another food play (June 19)
  • Related ETF: MENU.
  • Now read: Amazon Is A Special Snowflake


Original article

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.