- Eid al-Adha will be celebrated in Canada on Tuesday, July 20.
- PM Trudeau has advised people to follow public health guidelines amid celebrations.
- Investing in food stocks might be an option as restaurants are expected to do well amid lesser or no public health restrictions
Eid al-Adha, or the 'festival of sacrifice', marks the culmination of the annual pilgrimage of Muslims in Mecca, Saudi Arabia. It will be celebrated in Canada on Tuesday, July 20.
As it is a festival of sharing meals with family and friends, Prime Minister Justin Trudeau urged people to celebrate with caution and follow the public health guidelines.
Since we are talking about food, let’s take a look at some food stocks that could provide long-term gains to the investors.
MTY Food Group Inc. (TSX:MTY)
MTY Food Group houses brands like Big Smoke Burger, Croissant Plus and ManchuWok. The Montreal-based food company is among the top leaders in the casual dining industry and franchisor of quick-service restaurants.
It is estimated that the casual dining industry will recover from the pandemic woes in the second half of 2021, as economies continue to reopen. This could be beneficial for enterprises like MTY.
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In terms of stock performance, MTY Food Group did not disappoint investors despite the public health crisis. It returned 137 per cent in the last 12 months and expanded by 15.4 per cent year-to-date (YTD).
The stock had dipped to a fresh 52-week low of C$ 25,88 on July 13, 2020, but has since bounced significantly, closing at C$ 66.88 apiece on Monday, July 19.
The franchisor released an earnings report for the second quarter ended May 31, 2021, in which it recorded increased revenues of C$135.9 million compared to C$97.8 million in Q2 2020. Meanwhile, MTY achieved a net income of C$ 23.1 million in Q2 2021m up against a net loss of C$ 99.1 million in the same comparable period last year.
Restaurant Brands International Inc. (TSX:QSR)
One of the largest food companies in the world, Restaurant Brands International claims to have 27,000 restaurants worldwide, with a presence in over 100 countries. Restaurant Brands has under its umbrella big names like, Popeyes, Tim Horton's International and Burger King.
QSR stock has posted a marginal rise of 0.7 per cent YTD, although it managed to beat the Toronto Stock Exchange 300 Composite Index that declined by 18 per cent.
In the first quarter of 2021, Restaurant Brand's sales increased to US$ 507 million and its net income attributable to shareholders expanded to US$ 179 million. In addition, its cash and cash equivalents stood at US$ 1.6 billion in Q1 2021.
The company has also declared a quarterly dividend of US$ 0.53 to the shareholders.