If you're a data-driven investor, you may be surprised to learn that fast-casual restaurant stocks are some of the best investment opportunities in the back half of 2024. The headline economic news tells us that consumers are eating at home more, and inflation is pricing them out of even fast food.
But a surprise beneficiary of sticky inflation is the fast-casual sector. Why might that be? Primarily, it comes down to price. As the price of many fast food items moves higher, the price difference between the two types of chains is narrowing. And since fast-casual dining provides an actual or perceived healthier option, there's a path to winning those discretionary dollars.
This is a sector to watch, especially now that we're in the summer travel season. While the fall may have its own issues, the outlook for summer travel still looks bright. That means higher revenues, higher earnings, and likely a higher stock price for these fast-casual restaurants.
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