Updated: Nov 1, 2021
When my daughter won her basketball championship game (Whoop!), her request to celebrate was a trip to a not-so-nearby mall for her favorite meal EVER... mango chicken. It’s such a big treat because I have to drive 45 minutes, each way, to procure this delicacy. You may think this is some high-end restaurant.
Think again, it’s just a trip to the food court at a mall! If you’re not familiar with mango chicken, it’s a Thai dish that consists of a little chicken, dipped in batter and deep-fried, then smothered in a sickeningly sweet sauce. Yum! When we got to the mall, I immediately noticed the crowds in the food court. It was PACKED. Of course, the longest line was at our favorite Thai place.
Long lines, to me, are indicative of high demand. People WANT to eat at these places. As I looked around, tables were filled, and the Thai place wasn’t the only food stand that had a line… Guess what I did when I got home? That’s right! I checked out all the vendors to see which ones had publicly traded stocks.
The first food court staple I came across was Nathan’s Famous Foods (known for their hotdogs) (Ticker: NATH). Their franks can also be found at the grocery store and Yankee Stadium (Speaking of sports; click here if you missed my “Game On” blog post!). I then discovered that Auntie Anne’s, whose cinnamon-covered pretzels we’re big fans of, is owned by J&J Snack Foods (Ticker: JJSF). J&J Snack Foods not only distributes a lot of the soft pretzels you see at sporting events, but also Luigi’s Icees (including the fruit, Philly swirl, sour patch, and Minute Maid flavors).
My brainstorm led me to start wondering which vendors may be supplying these restaurants… Where do all these restaurants get their wholesale ingredients?
Frequently, smaller businesses get their ingredients from places like Costco (Ticker: COST) and Walmart (Ticker: WMT). Now, thinking about larger-scale establishments and chains, I investigated and discovered that two of the largest suppliers to the restaurant industry are US Food Holding Corp (Ticker: USFD) and Sysco (Ticker: SYY). Speaking of, I LOVE Sysco ranch dressing. I’m so obsessed with it, I have tried to match it to every ranch dressing available in the supermarket, but none of them compare! It’s like Cinderella and that tiny glass slipper. However, if you want to try the Sysco ranch dressing, you can frequently find it at dive bars!
On the opposite end of the spectrum, Chef’s Warehouse (Ticker: CHEF) is a distributor of higher-end ingredients used by the finest restaurants, hotels, caterers, and gourmet stores. So, chances are, that fancy restaurant you’re dying to try uses Chef’s Warehouse ingredients!
Anyone else hungry now? The restaurant and food industry is going to be a fascinating market to watch over the next year because of the beginning of a delta resurgence. If anyone is like me, you may be sick and tired of cooking, and I’ve noticed quite a bit of pent-up demand to go out to a nice dinner. We’ll see if your favorite restaurants are still going to have a line out the door!
These are just a few ideas I put together that reminded me of grabbing a fork and devouring some Mango Chicken. As a reminder, I always encourage you to research this stuff on your own. Just because I mention specific securities doesn't mean there aren't other fantastic options out there that you could stumble upon yourself! Some of the stocks in my newsletters could be trading at recent or all-time highs, which is a great time to just bookmark those stocks, get to know them, and wait for an opportunity to get involved!
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🤣It’s sure to be more fun than flies in the kitchen.🤣
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Disclaimer: Jessica Perrone is not a registered investment professional nor a financial advisor. This content is for educational purposes only and is not investment, tax, or financial advice. Always do your own research. You are solely responsible for all investment, tax, and financial decisions that you make. Please read the full disclaimer here.