The restaurant industry is gradually emerging from its COVID-19 pandemic blues. And because the industry’s upward trend in sales is expected to persist despite rising input costs, we think it could be wise to add quality restaurant stocks Papa John's (PZZA), Ruth's Hospitality (NASDAQ:RUTH), Noodles & Company (NDLS), and Good Times Restaurants (GTIM) to one’s portfolio now. So, let’s take a closer look at these names. Even though labor shortages and ongoing supply chain disruptions remain significant hurdles for several restaurants, consumers’ demand for dining out at restaurants is improving amid easing pandemic restrictions. According to Andrew K. Smith, managing director of the Mercado Partners' Savory Fund, it’s a perfect time to get aggressive in the restaurant industry.
In addition, consumer spending is expected to grow further in the coming months because of the holiday season. According to Statista, the U.S. chain restaurant industry’s market size is predicted to reach 149.57 billion in 2021.
So, we think it may be wise to bet on fundamentally strong restaurant stocks Papa John's International, Inc. (NASDAQ:PZZA), Ruth's Hospitality Group, Inc. (RUTH), Noodles & Company (NDLS), and Good Times Restaurants Inc. (GTIM).