What stocks can benefit from COVID restrictions easing in Canada?

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What stocks can benefit from COVID restrictions easing in Canada?

What stocks can benefit from COVID restrictions easing in Canada?
Image source: © 2022 Kalkine Media®     

Highlights

  • On Thursday, January 20, Ontario Premier Doug Ford announced that the province will allow a capacity limit of 50 per cent for indoor settings like restaurants from January 31 onwards.
  • Spectator areas like theatres, too, will be allowed to run at half attendance or 500 persons at max, he said.
  • In addition, the provincial government stressed that enhanced proof of vaccination and other necessary steps will remain mandatory for all the existing settings.

On Thursday, January 20, Ontario Premier Doug Ford announced that the province will allow a capacity limit of 50 per cent for indoor settings like restaurants from January 31 onwards.

Spectator areas like theatres, too, will be allowed to run at half attendance or 500 persons at max, he said.

In addition, the provincial government stressed that enhanced proof of vaccination and other necessary steps will remain mandatory for all the existing settings.

Let us discuss two TSX stocks that could benefit amid these relaxing COVID-19 rules.

1.    Pizza Pizza Royalty Corp (TSX: PZA)

The Toronto-based foodservice company saw its Royalty Pool system sales increase by 3.5 per cent year-over-year (YoY) to C$ 129.7 million in Q3 FY2021.

Pizza Pizza Royalty Corp also paid a monthly dividend of C$ 0.06 apiece to its shareholders earlier this month, on January 14.

Stocks of Pizza Pizza Royalty closed at a value of C$ 12.07 apiece on Thursday. The food stock rose by nearly 26 per cent in a year.

Also read: Nuvei (NVEI) & Wecommerce (WE): 2 tech stocks to buy on the dip?

Pizza Pizza Royalty Corp (TSX: PZA) and Cineplex Inc (TSX: CGX) latest financial results

 Image source: © 2022 Kalkine Media®        

2.    Cineplex Inc (TSX: CGX)

Cineplex Inc saw a revenue of C$ 250.4 million in Q3 FY2021, as compared to C$ 61 million a year ago.

The movie theatre company recorded an adjusted EBITDA of C$ 48.6 million in the latest quarter, as compared to loss of C$ 28.9 million in Q3 2020.

Cineplex stock closed at a value of C$ 13.33 apiece on Thursday, January 20, returning a one-year profit of over 27 per cent.

Stocks that can benefit from COVID restrictions easing in Canada

Bottomline

COVID-related restrictions are likely to relax further in Canada in the coming months, especially for indoor settings, as worries regarding the omicron variant has started to decline.

Keeping that in mind, Canadian investors can choose to explore the stocks of restaurants like Pizza Pizza Royalty and movie theatre companies such as Cineplex, as they could note an increase in demand in the near future.

Also read: What silver stocks to buy in Canada as prices hit 7-week high?

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