As people resume face-to-face socializing, with nearly half of the U.S. population now fully vaccinated, restaurant operators are generating significant revenue growth. Cases in point are popular Mexican fast-food giants Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Fiesta Restaurant (NASDAQ:FRGI), and Del Taco Restaurant (TACO). We believe they are poised to capitalize on the industry’s steady recovery. So, these stocks could be solid bets now.As people gradually return to dining out now that nearly half of the U.S. population is fully vaccinated against COVID-19, the restaurant industry is witnessing a steady rebound in sales. Also, because many restaurant operators adapted quickly to changing consumer preferences by establishing robust home-delivery networks and drive-throughs, their order volumes have increased significantly.
Furthermore, owing to an increase in consumer spending, the sector is expected to continue growing in the coming months. The global foodservice market is expected to reach $3978.83 billion by 2026, registering a 4.7% CAGR. As popular restaurant chains continue to invest heavily in innovating their food categories to meet consumers’ changing needs and bulk up their digital, delivery, and curbside channels to win more customers, they should garner sustained growth.
Therefore, we think financially sound Mexican restaurant companies, Chipotle Mexican Grill Inc . (NYSE:CMG), Yum! Brands Inc . (NYSE:YUM), Fiesta Restaurant Group Inc . (FRGI), and Del Taco Restaurant Inc. (TACO), with their iconic brands, are well-positioned to optimize their revenues.