The bear market is wiping out the value of nearly every asset class. Only cash and energy are the out-
performing sectors. Stock selection is critical in beating the market.
Investors who rationalize that people must eat well at the right price have three stocks to pick.
Chipotle (CMG) has the strong pricing power to draw customers. Although CEO Brian Nichol expects
lower transactions from the lower-income bracket, it enjoys strong overall demand.
Restaurant Brands International (QSR) owns Tim Hortons and Burger King. It posted a net income of
$530 million, sharply above the $329 million posted last year.
Domino’s Pizza (DPZ) has a menu mix that appeals to customers. The stock bottomed at $300 before the
Q3/2022 report on Oct. 13. It posted revenue of $1.07 billion, up by 7.2% Y/Y. The same-store sales
grew by 2%. Non-GAAP EPS was $2.79.
The company will emerge stronger despite the volatility ahead. In the U.S., Domino’s delivered one out
of every three pizzas. This did not change after the pandemic ended.
Many post-pandemic companies are losing value. Those who did not adapt to the consumer spending less
time at home are floundering. Domino’s represents a success story in the restaurant sector.
