EATZ: 3rd Quarter 2025 Portfolio Review
Portfolio
Performance
EATZ closed the third quarter of 2025 with a loss of -9.89% (NAV) / -9.91% (market), underperforming the S&P 500 Index, which rose 8.12% over the same period.
Winners and Losers
Several holdings posted strong gains during the quarter, benefiting from resilient demand and brand strength:
- Potbelly Corp. (PBPB): up 39.10%
- Red Robin Gourmet Burgers Inc. (RRGB): up 18.48%
- Casey’s General Stores Inc. (CASY): up 9.30%
However, some holdings experienced declines, weighed down by margin pressures, shifting consumer behavior, and challenges in international markets:
- Brinker International Inc. (EAT): down -29.75%
- BJ’s Restaurants Inc. (BJRI): down -31.55%
- Dutch Bros Inc. (BROS): down -23.45%
Portfolio
The fast-casual and quick-service segments continued to resonate with consumers, offering a balanced combination of affordability, convenience, and quality. These formats remain well positioned to capture shifting dining preferences, as cost-conscious customers seek value-oriented choices without sacrificing the overall experience.
EATZ made a number of strategic portfolio adjustments in Q3, aiming to align with consumer demand trends and capitalize on growth-oriented opportunities.
EATZ reentered positions in:
- Casey’s General Stores Inc. (CASY): 300 shares
Exited positions include:
- Cava Group Inc. (CAVA)
- McDonald’s Corp. (MCD)
- Shake Schak Inc. (SHAK)
- Sweetgreen Inc. (SG)
- One Group Hospitality Inc. (STKS)
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| NATH | NATHAN’S FAMOUS INC | 7.06% |
| PBPB | POTBELLY CORP | 6.46% |
| BJRI | BJ’S RESTAURANTS INC | 6.39% |
| RRGB | RED ROBIN GOURMET BURGERS | 5.50% |
| LOCO | EL POLLO LOCO HOLDINGS INC | 5.16% |
| DRI | DARDEN RESTAURANTS INC | 5.16% |
| CASY | CASEY’S GENERAL STORES INC | 5.15% |
| BROS | DUTCH BROS INC-CLASS A | 4.69% |
| DPZ | DOMINO’S PIZZA INC | 4.56% |
| ARMK | ARAMARK | 4.54% |
As of 09.30.2025. 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
In Q3 2025, the U.S. restaurant industry struggled to remain resilience amid persistent economic pressures. Comparable sales trended upward, but overall traffic remained negative, signaling that consumers are more selective with discretionary spending and gravitating toward value-oriented options.
Overall, chain restaurant sales increased modestly, though still lagged the 4.1% rise in menu prices, resulting in net traffic declines. Growth opportunities emerged among value-driven and tech-integrated brands, underscoring affordability as a central competitive theme.¹
Consumer sensitivity to pricing remains pronounced: 95% of restaurant operators report that guests are increasingly focused on value, seeking deals through meal bundles, limited-time offers, and loyalty programs.²
Performance varied by segment. Casual dining continued to lead growth, followed by fast-casual and quick-service formats.¹ Economic headwinds included a decline in tourism, growing financial strain on younger consumers, and even high-income households reporting paycheck-to-paycheck pressures. However, these factors were partially offset by lower gas prices, which supported family dining and suburban traffic.³
Globally, menu innovation reflected consumer trends toward Southeast Asian cuisines, wellness-focused beverages, and sustainable sourcing practices—signaling a shift in culinary and ethical priorities across markets.
The global restaurant market is projected to reach $6.5 trillion by 2035, expanding at a 5.3% compound annual growth rate. Growth is expected to be fueled by continued adoption of AI, automation, ghost kitchens, and dynamic pricing technologies, all aimed at offsetting operating costs that have climbed more than 30% since 2019.
Within the U.S., operators anticipate ongoing challenges in labor (96%), food costs (95%), and inflation (95%), yet 41% still expect higher sales over the coming year.⁴
Emerging trends such as experiential dining, non-alcoholic beverage expansion, and off-premises innovations (including subscription-based offerings) are likely to drive adaptation across the industry. However, potential economic slowdowns could continue to weigh on traffic growth, particularly in discretionary categories.
Sources:
1 Restaurant Business Quarterly Q3 2025. In a tough year consumers played favorites. July 2025.
2 National Restaurant Association. State Of The Restaurant Industry 2025.
3 Black Box Intelligence. Q3 Restaurant Industry Snapshot. Key Trends, Consumer Shifts & Workforce Insights. October 2025.
4 Tastewise. Reinoso, Kelia Losa. Future of Dining: Restaurant Industry Trends for 2025. September 2025.
Cheers,Past Commentary
Definitions:
The compound annual growth rate is the annual rate of return that shows how an investment grows from its beginning value to its ending value over time, assuming reinvested profits.
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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.