3 resilient stocks to help you weather market crashes: Chipotle, Domino’s, Texas Roadhouse

Portfolio construction is an often-neglected aspect of investing that not many people discuss. However, this skill is vitally important in ensuring that your portfolio can withstand crises and weather economic storms. Think of your investment portfolio as a pyramid with a wide base. You should start with a strong, foundational layer of resilient stocks at this base. You can then layer on stocks with faster growth along with more speculative ones closer to the apex.

By introducing this firm foundation for your portfolio, it will help to solidify it and enable you to withstand the market crashes and bear markets that come along from time to time. One source for such resilient stocks is the food and beverage sector. As eating is essential, companies in this area that have built up a strong presence and sturdy track record are in a better position to sail through a crisis unscathed. Here are three stocks that can help to anchor your portfolio during times of volatility.

Texas Roadhouse
With more than 650 restaurants located in 49 states, Texas Roadhouse (NASDAQ: TXRH) has demonstrated its ability to weather the pandemic and emerge even stronger. The popular steakhouse chain reported that total revenue for the first nine months of 2021 surged 46% year over year to $2.6 billion and was nearly 27% higher than the same period in 2019. Net income stood at $192 million, up 46% from the pre-pandemic period two years ago. Comparable restaurant sales showed a strong improvement, increasing by 39.5% year over year while its profit margin increased by 6.9 percentage points to 17.3%. Texas Roadhouse also opened 18 company restaurants and two franchised outlets in the first nine months of 2021.

CEO Terry Morgan remains optimistic about the company’s future, citing strong demand for the brand along with healthy cash flow that enabled the business to conduct share buybacks and resume paying out a quarterly dividend of $0.40 per share. Finally, the company’s planned acquisition of seven franchise restaurants in early 2022 should assure investors that it can continue to grow steadily as it leverages its brand’s strength to attract more customers to its restaurants.

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