Best Eating & Drinking Places Stocks by Growth Stability

This industry covers restaurant and dining operators, from quick-service and fast-casual chains (Starbucks, Wendy's, Shake Shack) to Cannae Holdings, an investment holding company whose portfolio centers on the Restaurant Brands International franchise system.

Restaurant chains that lean on franchising collect steadier, royalty-like revenue from franchisees rather than carrying the full cost and margin volatility of running every location themselves, which smooths out results considerably compared to company-operated peers. Across the industry, the bigger swing factor is input costs (labor and food) rather than customer demand, since eating out is sticky even in a softer economy, just often trading down from full-service to quick-service.