Super Bowl Sunday: A Feast for Food and Beverage Chains
Key Takeaways:
* Chicken wing consumption is projected to reach a record 1.47 billion during Super Bowl LIX.
* Delivery-centric businesses like Domino's and Wingstop are expected to see a significant boost.
* Prices for chicken wings have increased by 7.2%, but demand remains strong.
* Molson Coors, Mondelēz, and Domino's are top picks among beverage and food companies.
Food Chains to Watch:
* Wingstop: Same-store sales grew 20.9% last quarter, with analysts predicting an 11.70% jump in Q4.
* Domino's: Leads the pizza market with value-driven promotions and new menu items.
* Tyson Foods: High chicken wing demand has driven sales, with January and early February being peak sales periods.
Beverage Plays:
* Molson Coors: Super Bowl advertising campaign could launch a strong year.
* Mondelēz: Oreo cookies continue to drive growth for the snack giant.
Industry Trends:
* Inflationary pressures have led to increased prices for snacks and beverages.
* Consumers are more value-conscious, driving demand for promotions and discounts.
* Delivery services are essential for Super Bowl Sunday celebrations.
* Companies like PepsiCo and Hershey are facing challenges in overcoming shopper sticker shock due to price hikes.