EATZ: 1st Quarter 2025 Portfolio Review
Portfolio
Performance
EATZ ended the first quarter of 2025 with a modest decline of -2.67% (NAV) and -2.65% (market price), outperforming the S&P 500 Index, which fell -4.27% during the same period. As of March 31, 2025, EATZ maintained a Four-Star Overall Morningstar RatingTM within the Consumer Cyclical category*, placing it among the top-performing funds out of 48 peers based on risk-adjusted returns.
Winners and Losers
Several holdings delivered notable gains despite a challenging market backdrop. Nathan’s Famous Inc. (NATH) rose 23.21%, Dutch Bros Inc. (BROS) advanced 17.87%, and Brinker International Inc. (EAT) increased by 12.67%. On the other hand, Shake Shack Inc. (SHAK) declined by 32.07%, Sweetgreen Inc. (SG) dropped 21.96%, and Dine Brands Global Inc. (DIN) fell 21.08%, reflecting consumer shifts and margin pressure in the casual dining space.
Portfolio
The fast-casual and quick service restaurant segments continue to resonate with consumers, offering a balance between affordability and quality. These categories remain well-positioned to benefit from evolving dining habits, especially as consumers seek value and convenience in a more cost-conscious environment. The ability to adapt through technology, delivery channels, and brand loyalty remains a key competitive advantage across the restaurant space.
EATZ made several strategic adjustments during the quarter, reflecting a focus on growth-oriented names and consumer-driven demand trends.
New additions include:
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- Doordash Inc. (DASH): 600 shares
EATZ reentered positions in:
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- Portillo’s Inc. (PTLO): 10,000 shares
- Potbelly Corp. (PBPB): 8,500 shares
Exited positions include:
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- Casey’s General Stores Inc. (CASY)
- Restaurant Brands International (QSR)
These changes align with EATZ’s continued emphasis on identifying innovative brands and scalable platforms, while trimming exposure to more mature names with limited near-term upside.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| DRI | DARDEN RESTAURANTS INC | 6.32% |
| NATH | NATHAN’S FAMOUS INC | 6.20% |
| EAT | BRINKER INTERNATIONAL INC | 6.08% |
| TXRH | TEXAS ROADHOUSE INC | 5.79% |
| CAKE | CHEESECAKE FACTORY INC/THE | 4.97% |
| DPZ | DOMINO’S PIZZA INC | 4.90% |
| YUMC | YUM CHINA HOLDINGS INC | 4.72% |
| LOCO | EL POLLO LOCO HOLDINGS INC | 4.65% |
| USFD | US FOODS HOLDING CORP | 4.43% |
| BROS | DUTCH BROS INC-CLASS A | 4.07% |
As of 3.31.2025. Cash is not included. Holdings are subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/eatz. The holdings details are updated each market day.
Market Update
Macroeconomic uncertainty, including inflation concerns and ongoing recessionary fears, continues to impact consumer behavior. Price sensitivity remains high, with many diners opting for value-driven experiences over traditional full-service options. Casual and fine dining segments faced particular pressure, while fast-casual concepts with efficient service models fared better. Labor market conditions showed slight stabilization, as fewer hourly workers exited their roles. Looking ahead, inflation trends, policy shifts, and geopolitical developments should remain as the key drivers for both consumer sentiment and industry performance.
Cheers,Past Commentary
* The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.
©2025 Morningstar, Inc. All Rights Reserved. Morningstar and/or its content providers are the proprietors of this information; do not permit its unauthorized copying or distribution; do not warrant it to be accurate, complete or timely; and are not responsible for damages or losses arising from its use. Past performance is no guarantee of future results.
EATZ received four stars for the overall and 3-year rating among 48 funds in Morningstar’s Consumer Cyclical category as of 3.31.2025.
Definitions:
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus or summary prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
Investing involves risk including possible loss of principal. The hotels, restaurants & leisure industry is highly competitive and relies heavily on consumer spending for success. The prices of securities of companies in the industry may fluctuate widely due to general economic conditions, consumer spending and the availability of disposable income, changing consumer tastes and preferences and consumer demographics, in addition may be affected by the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision.
The success of companies owning and operating restaurants depends heavily on disposable household income and consumer spending, and changes in demographics and consumer preferences can affect the success of such companies. These companies may be subject to severe competition, which may have an adverse impact on their profitability. In addition, restaurants may be affected by nutritional and health concerns, and federal, state and local food inspection and processing controls. Changes in labor laws and other labor issues, such as increased labor costs, could adversely affect the financial performance of such companies.
Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.
Holdings and allocations are subject to risks and to change.
The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.