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Restaurant IPO Stocks: Who Will Bring the Sizzle

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Earnings season is picking up steam fast as over 1,400 companies are expected to report earnings this week, including a large chunk of the S&P 500.

We’re also getting at least a dozen restaurants reporting this week from fast food to fast casual.

It’s been a few years since the restaurant IPO craze. All 5 of these companies were part of that big push. They have gone IPO in the last five years. Only now are we getting an idea about their track records.

Even though several have never missed on earnings, which is an impressive feat, the restaurant stocks are mostly out of favor with investors.

Will this quarter’s earnings reports change some minds?

Restaurant IPO Stocks: Who Will Bring the Sizzle

1.    Bojangles hasn’t missed since its 2015 IPO. It’s the only stock that is also seeing some upward momentum out of these five companies. When will it come to the Midwest?

2.    Potbelly (PBPB - Free Report) has started beating again. It will try for its 6th beat in a row this week. Shares aren’t really moving much though. Be sure to watch for news on how new menu items are performing and for any possible impact on margins due to the high cost of avocados.

3.    Habit is the other California burger chain and it has a good beat record. It has only missed twice since its 2014 IPO. It’s not as popular a stock as Shake Shack but it’s slowly expanding nationally.

4.    Shake Shack (SHAK - Free Report) hasn’t missed since its IPO. Impressive. Even though shares have fallen since the IPO, it’s still a popular stock with Mom and Pop investors. Be sure to watch same-Shack-sales and announcements about store openings.

5.    El Pollo Loco (LOCO - Free Report) has run into trouble in the last four quarters with more misses than beats. Most of its stores are in pricey California so be sure to tune in on labor costs. Will this be the start of a turnaround for this popular chicken chain?

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[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]

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