The stock market is like the Wild West, especially when investing in individual stocks. Safe restaurant stocks, however, provide investors with peace of mind in the face of economic uncertainties.
These established giants are certainly not your average tech company. They operate in a completely different environment and can often be tied to the economy’s overall health. However, their resilient business models, consistent cash flows and loyal customer bases can deliver impressive returns over the long term.
As we look ahead to 2030, several restaurant stocks stand out as safe investments with the potential for triple-digit returns. The companies combine strong fundamentals, strategic growth initiatives and a proven record of returning value to shareholders. Furthermore, the global expansion of successful restaurant brands into emerging markets presents additional growth opportunities that investors can’t miss.
Now, let’s discover the three best safe restaurant stocks that could deliver triple-digit returns by 2030!
Texas Roadhouse (TXRH)
Texas Roadhouse (NASDAQ:TXRH) has carved out a niche in the casual dining segment, focusing on high-quality steaks, refreshing sides and a unique family-oriented atmosphere. The company’s attention to detail and superior dining experiences has contributed immensely to its impressive financial performance since the pandemic.
Texas Roadhouse has emerged as a winner after emerging stronger than ever from the COVID-19 pandemic. Its stock has significantly outperformed the broader market in the last five years, rising an astonishing 215% compared to the S&P 500’s 86%. This certainly is not an accident, as the company’s growth has been driven by its strategic initiatives and disciplined approach to expansion. The company has steadily increased its restaurant count while maintaining strict quality control standards.
Moreover, the company opened 10 new restaurants in 2024, with another 18 currently under construction. In Q1 FY24, revenue increased 12% yearly to $1.32 billion. Earnings per share rose 32% from the year prior, with comparable restaurant sales up 8.4%. As strong traffic trends continue, TXRH stock is among the best safe restaurant stocks to buy.
McDonald’s (MCD)
McDonald’s (NYSE:MCD) is a behemoth in the fast-food industry. It is known for its vast presence and extensive menu, which caters to a wide range of tastes. The company’s global reach, powerful brand, and restaurant expansion plans make it well-positioned for long-term growth.
One of McDonald’s key strengths is its ability to innovate continuously. It has heavily invested in technology and digital innovation to enhance its customer experiences. This includes its growing loyalty rewards program, digital kiosks, mobile ordering and delivery options. These initiatives streamline its operations and cater to the growing trend of digital and contactless transactions. It has continued to show resilience in the first quarter of 2024, marking its 13th consecutive quarter of comparable sales growth.
Furthermore, the company is on pace to reach 50,000 restaurants by 2027. This positive backdrop and its poor stock performance in 2024 do not reflect its long-term growth prospects. With a solid financial foundation, MCD stock is one of the top restaurant stocks to buy for triple-digit returns through 2030.
Restaurant Brands International (QSR)
Restaurant Brands International (NYSE:QSR) is the parent company of some of the most recognizable names in the fast-food industry, including Burger King, Tim Hortons and Popeyes. Its growing revenue, earnings and strong pricing power make it a staple among safe restaurant stocks to buy in 2024.
Restaurant Brands International’s strategy focuses on expanding its footprint globally with its high-quality brands. It sees significant growth opportunities in emerging markets to drive comparable restaurant sales and strengthen its market positioning in fast-food offerings. Burger King, for instance, has been expanding its presence in Asia and Latin America.
Additionally, Tim Hortons, which has a significant presence in Canada, continues to expand into international markets. After reporting record revenue, earnings and double-digit system-wide sales growth in FY23, its growth is accelerating. In Q1 FY24, revenue increased 9% year over year to $1.74 billion. Earnings per share rose 18% to 72 cents per share, with comparable sales up 4.6% from the year prior. Its strong financial performance and disciplined approach to capital allocation make it a compelling investment opportunity in 2024 and beyond.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
