Which Restaurant Stock is a Better Buy? By StockNews

© Reuters. Shake Shack vs. Papa John’s: Which Restaurant Stock is a Better Buy?

Restaurants are focusing increasingly on digitizing their operations and offering contactless delivery services to meet the challenges of rising COVID-19 cases. Also, booster vaccine shots and rising consumer spending are among the factors that should help Papa John’s (PZZA) and Shake Shack (SHAK) endure. But which of these stocks is a better buy now? Let’s find out.Papa John’s International, Inc. (NASDAQ:) in Louisville, Ky., and New York City’s Shake Shack Inc . (NYSE:) are well-known restaurant operators. PZZA operates and franchises pizza delivery, dine-in, and carry-out restaurants under Papa John’s trademark. As of June 29, 2021, it operated 5,400 Papa John’s restaurants. In comparison, SHAK operates as a fast-casual restaurant that offers food and beverages. As of December 30, 2020, it operated 311 Shake Shacks.

With the resurgence of COVID-19 cases, the restaurant industry is focusing more urgently on digitizing operations and strengthening contactless delivery services to maintain sales. This, along with a strong vaccination drive, should help the industry stay afloat in the near term. The U.S. restaurant industry is expected to grow at a 4% CAGR to $514.13 billion by 2027. So, both PZZA and SHAK should benefit.

But while SHAK’s shares have declined 26.1% in price over the past six months, PZZA has surged 54.3%. And PZZA is a clear winner with 9.1% price gains versus SHAK’s negative returns in terms of their past month’s performance. But which of these stocks is a better pick now? Let’s find out.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.