Credit: Shutterstock photoAs the last few days of the year are upon us, many investors will be taking this time to take a new look at their portfolios, and review the winners and losers in industries across the board. One industry that had some serious winners in 2015 was the restaurant industry, where many companies in the space had successful years thanks to a multitude of factors including lower energy costs and a gaining U.S. economy.
Below are three of 2015's top performers from in the restaurant sector that will be looking to continue their performances into the fast-approaching New Year.
Starbucks
Coffee retail giant Starbucks SBUX enjoyed a very successful 2015. The company's stock is up over 46% year-to-date, and shares are trading at upwards of $60 a share. Starbucks also saw its revenues hit all-time highs as its sales numbers reach levels previously untouched.
Although it's unclear if the company will able to replicate its 2015 results, Starbucks has a great amount of potential to do just that next year. Although the company is only a Zacks Rank #3 (Hold) right now, there are several indicators that point towards a strong 2016.
The company holds a B for its growth style score thanks to a great net margin of 14.39% and an astonishing return on equity figure of 40.14%. Starbucks has projected EPS growth of 19.37% for 2016, as well as projected sales growth of 12.87%.
While consumers in the U.S. may feel as though they see a Starbucks location almost everywhere they go, the company still has a great deal of growing left to do, and it is poised to take advantage of those possibilities in the New Year.
Carrols Restaurant Group Inc.
Another big winner in the restaurant industry for 2015 is the largest franchisee of Burger King restaurants, Carrols Restaurant Group Inc. TAST . After a year-to-date performance of almost 56%, the company's stock now trades at nearly $12 a share as 2015 comes to a close.
TAST doesn't seem to be slowing down any time soon either; 2016 holds a great deal of potential for the company. A current Zacks Rank #1 (Strong Buy) stock, TAST also boasts an A for its Growth Style Score, and a B for its Value score.
Also, estimate revision activity for 2016 has been very positive recently. There have been three upward revisions for next year in just the last 60 days, which has helped to push the Zacks Consensus EPS Estimate up to $0.39. Just 60 days ago the EPS Consensus Estimate was at just $0.22 a share.
While 2015 was successful for Carrols Restaurant Group, the New Year could produce solid results for investors, especially as the company has great growth prospects, like an EPS growth of an incredible 425%.
Chuy's Holdings Inc.
Finally, there is Chuy's Holdings Inc. CHUY , who like the two stocks above, enjoyed a great run in 2015. Owning and operating full-service restaurants that serve a distinct menu of authentic Mexican food, shares of CHUY are up around $31 currently, representing a year-to-date gain of almost 59%.
The company is looking to carry that success into the New Year as well, and analysts seem to think it is very possible for CHUY to do so. There have been five upward estimate revisions in just the last 60 days, and the Zacks Consensus EPS Estimate has continued to rise.
The company is also a Zacks Rank #2 (Buy) ranked stock, while also having an A for its Growth Style Score and a B for its Value Score. CHUY was able to beat on earnings estimates in each of its last four quarters by an average of almost 15%, and is projected for solid EPS growth of approximately 16% in 2016.
Bottom Line
While investors may not have reaped the benefits from the winning restaurant stocks in 2015, they may still have an opportunity to do so for the coming year. All three stocks have high Zacks Rank standings in addition to solid style scores, and each holds a great deal of potential for 2016. As energy prices are poised to remain low, and the U.S. economy continues to improve, investors should definitely consider these three stocks if they are looking for proven winners from the restaurant sector, each with momentum heading into the fast approaching New Year.
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STARBUCKS CORP (SBUX): Free Stock Analysis Report
CARROLS RESTRNT (TAST): Free Stock Analysis Report
CHUYS HOLDINGS (CHUY): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
