Subway Rival Enjoys Spike In Popularity, Plus: Potbelly's Tasty Stock Performance
Portfolio Pulse from Neil Dennis
Jersey Mike's Subs, a rival to Subway, is experiencing a surge in popularity, with visits up 14.1% YoY and plans to open 350 new stores in 2024. The company targets affluent suburbs, attracting a higher percentage of prosperous customers compared to other sub-sandwich chains. In the fast food sector, Potbelly Corporation (PBPB) shares are up 20.5% in 2024, Shake Shack Inc. (SHAK) shares jumped 26%, and Chipotle Mexican Grill Inc. (CMG) shares climbed 88.2% since the start of 2023. The Invesco Food & Beverage ETF (PBJ) is down 1% since the start of 2024, while the AdvisorShares Restaurant ETF (EATZ) is up 2.3% this year.
February 16, 2024 | 10:25 pm
News sentiment analysis
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NEGATIVE IMPACT
The Invesco Food & Beverage ETF, holding both Shake Shack and Chipotle, is down 1% since the start of 2024.
Despite holding strong performers like Shake Shack and Chipotle, the PBJ ETF's decrease suggests a negative short-term impact, possibly due to broader market conditions.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Chipotle Mexican Grill Inc. shares have climbed 88.2% since the start of 2023, after reporting a 15.4% rise in fourth-quarter revenue.
Chipotle's stock price increase is driven by its strong fourth-quarter revenue and earnings performance, indicating a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The AdvisorShares Restaurant ETF, carrying stocks like Potbelly, Shake Shack, and Chipotle, is up 2.3% this year.
The EATZ ETF's positive performance, despite mixed sector results, suggests a positive short-term impact, likely due to its diversified holdings in strong performing restaurant stocks.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Potbelly Corporation shares are up 20.5% in 2024, with a 125% gain since the start of 2023, showing strong sales growth.
The significant increase in Potbelly Corporation's stock price is attributed to its strong sales growth and positive interim results, indicating a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Shake Shack Inc. shares jumped 26%, with a 139% increase since the start of 2023, after reporting a 20% rise in fourth-quarter revenue.
Shake Shack's significant stock price increase is due to its impressive fourth-quarter revenue growth and earnings beat, suggesting a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90