EATZ: 4th Quarter 2025 Portfolio Review
Portfolio
In the fourth quarter of 2025, the AdvisorShares Restaurant ETF (EATZ) declined -4.80% (NAV) and -4.87% (market), underperforming the S&P 500 Index, which gained 2.66% over the same period as higher input costs, pressured consumer spending, and broader market rotation weighed on restaurant-related equities.
Winners and Losers
Several holdings contributed positively to quarterly performance, supported by resilient consumer demand and established brand positioning:
- Dine Brands Global Inc (DIN): +30.77%
- Dutch Bros Inc (BROS): +16.97%
- Brinker International Inc (EAT): +13.29%
Conversely, certain holdings detracted from performance:
- Red Robin Gourmet Burgers Inc (RRGB): -40.96%
- DoorDash Inc (DASH): -32.77%
- Nathan’s Famous Inc (NATH): -12.72%
Portfolio
The quick-service and fast-casual segments continued to resonate with consumers, offering a compelling blend of value, convenience, and enhanced engagement through technology such as mobile ordering and loyalty programs. Restaurants operating within these segments remain well positioned to benefit from shifting dining preferences, as cost-conscious consumers seek affordable options without sacrificing a quality experience.
During the quarter, EATZ made selective portfolio adjustments aimed at positioning the fund to capture growth aligned with changing consumer preferences:
- First Watch Restaurant Group (FWRG): +7,516 shares
- Serve Robotics Inc (SERV): +10,082 shares
EATZ reentered its position in:
- Restaurant Brands International (QSR): 1,900 shares
EATZ exited positions in:
- Cracker Barrel Old Country (CBRL)
- Potbelly Corp (PBPB)
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| EAT | BRINKER INTERNATIONAL INC | 7.66% |
| CASY | CASEY’S GENERAL STORES INC | 7.46% |
| NATH | NATHAN’S FAMOUS INC | 6.34% |
| BROS | DUTCH BROS INC-CLASS A | 6.31% |
| USFD | US FOODS HOLDING CORP | 4.88% |
| DRI | DARDEN RESTAURANTS INC | 4.87% |
| QSR | RESTAURANT BRANDS INTERN | 4.81% |
| DIN | DINE BRANDS GLOBAL INC | 4.78% |
| YUM | YUM! BRANDS INC | 4.69% |
| YUMC | YUM CHINA HOLDINGS INC | 4.48% |
As of 12.31.2025. 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
In the fourth quarter of 2025, the U.S. restaurant sector demonstrated resilience amid ongoing economic pressures, though performance varied across segments. Casual dining continued to lead category growth, followed by fast-casual and quick-service restaurants. Headwinds included softer guest traffic, increased financial pressure on younger consumers, and tighter budgets among higher-income households. These challenges were partially offset by lower fuel prices, which supported discretionary outings and regional travel.¹
Same-store sales showed modest improvement during the quarter, however, overall traffic remained negative, signaling that consumers are becoming more selective with discretionary spending and increasingly gravitating toward value-oriented options. While sales at chain restaurants rose modestly, they failed to keep pace with a 3.3% increase in menu prices, resulting in continued pressure on driving customer foot traffic.
Opportunities continued to emerge for brands emphasizing affordability and leveraging technology, underscoring the importance of value-driven strategies in a price-sensitive environment. Consumer responsiveness to pricing remains elevated, with a majority of chain restaurant operators reporting increased demand for promotions, including bundled meals, limited-time offers, and loyalty programs.²
Globally, consumer preferences continued to evolve, with rising demand for East Asian flavors, health-focused beverages, and sustainably sourced ingredients, reflecting shifting culinary tastes and ethical considerations across regions. The global restaurant industry is projected to reach $6.5 trillion by 2035, growing at a 5.3% compound annual rate. Growth is expected to be driven by increased adoption of artificial intelligence, automation, virtual kitchens, and dynamic pricing tools, as operators work to offset operating costs that have risen more than 30% since 2019.³
Despite ongoing challenges, including labor availability, ingredient costs, and broader cost inflation, industry sentiment remains cautiously optimistic. While nearly all U.S. operators cite staffing and cost pressures as key concerns, 41% expect revenue growth in the coming period.4 Emerging trends such as experiential dining, expanded non-alcoholic beverage offerings, and off-premise consumption models, including subscription-based services, are expected to support continued adaptation across the sector.
Looking ahead to 2026, the restaurant industry is positioned for modest growth within a divided economic environment, with continued emphasis on operational efficiency and value-focused offerings. Lower gasoline prices, potential tax relief, and major global events such as the FIFA World Cup may provide incremental tailwinds to traffic, particularly for full-service concepts.⁴ Overall, the sector appears poised to recalibrate rather than collapse, with opportunities favoring brands that adapt to intentional dining behaviors and leverage technology to deliver personalized customer experiences.
Sources:
1. NRN. Insights. Kelso, Alicia. Key tailwinds for the restaurant industry in 2026. January 16th, 2026.
2. National Restaurant Association. State of the Restaurant Industry 2025. December 2025.
3. Bank of America. Industry Trends and Insights. State of the Restaurant Industry 2025. January 2026.
4. McKinsey & Company. What US consumers want from restaurants in 2026. January 8th, 2026.
Cheers,
Dan Ahrens
AdvisorShares
AdvisorShares Restaurant ETF (EATZ) Portfolio Manager
Past Commentary
Definitions:
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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.