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Both online and brick-and-mortar food operators are experiencing high pent-up demand for tacos. As such, quality stocks in this space Yum! Brands, Inc. (YUM) and El Pollo Loco Holdings, Inc. (LOCO) are well-positioned to cash in on the trend.
However, with consumers’ preference shifting towards healthier and homemade food, we think fundamentally weak companies in this space—Chipotle Mexican Grill, Inc. (CMG) and Fiesta Restaurant Group, Inc. (FRGI)—might struggle to stay afloat.
