Super Bowl Snacks Boost Restaurant and Food Stocks
In This Article:
* TSN +0.10%
* TAP +0.19%
* TAP-A 0.00%
* MDLZ +0.69%
* DASH +0.70%
Super Bowl Sunday Bonanza
The Super Bowl is a major boost for restaurant and food stocks as fans indulge in wings, pizza, and other snacks. The National Chicken Council estimates that fans will consume a record 1.47 billion wings during Super Bowl LIX.
Top Delivery Stocks
Analysts recommend Domino's (DPZ) and Wingstop (WING) as top delivery-centric stocks for Super Bowl Sunday due to their strong brands and value offerings. Wingstop reported a 20.9% increase in same-store sales last quarter, while Wall Street estimates an 11.70% year-over-year jump for the fourth quarter.
Wing Demand Drives Prices
Chicken wing prices have risen 7.2% from last year as demand surges. Grocers are balancing demand by raising prices moderately to ensure adequate supply.
Pizza and Beverages
Domino's continues to dominate the pizza segment with its value perception and new menu items like New York-style pizza. Molson Coors (TAP) and Mondelēz (MDLZ) are expected to benefit from Super Bowl beverage sales, with Molson Coors' 60-second commercial spot already generating buzz.
Oreo's Growth Driver
Mondelēz's Oreo cookies remain a growth driver, supported by effective point-of-sale marketing and packaging initiatives. The company recently posted results that slightly missed estimates but showed 3.1% growth in net revenue.
Snacking Challenges
While fast food restaurants have successfully addressed inflation-weary consumers, snack brands like PepsiCo (PEP) face challenges in driving demand and overcoming sticker shock. PepsiCo's Mountain Dew and Pepsi have lost market share to Coke, and its salty snack business continues to struggle.