EATZ: 4th Quarter 2024 Portfolio Review
Portfolio
Performance
EATZ ended the third quarter on a strong note, increasing 4.93% (NAV) and 4.94% (market). The fund outpaced the S&P 500, which delivered a 2.41% return during the same period. As of December 31, 2024, EATZ earned a Five-Star Overall Morningstar Rating within the Consumer Cyclical category*, placing it among the top-performing funds out of 48 peers. For the full year, EATZ posted an impressive 23.20% (NAV) and 23.18 (market) gain, showcasing its ability to navigate market trends effectively.
Winners and Losers
The quarter’s biggest gains came from Brinker International Inc. (EAT), which surged 72.86%, followed by Dutch Bros Inc. (BROS), up 63.53%, and Cheesecake Factory Inc. (CAKE), which climbed 17.65%. On the flip side, Wingstop Inc. (WING) dropped 31.64%, Cava Group Inc. (CAVA) declined 8.92%, and El Pollo Loco Holdings Inc. (LOCO) fell 15.77%, slightly weighing on overall portfolio performance.
Portfolio
The fast-casual dining and quick service restaurant segments continue to thrive, bridging the gap between affordability and quality. Offering a superior dining experience compared to traditional fast food but at lower prices than full-service restaurants, these segments have captured the attention of cost-conscious yet quality-driven consumers. As dining trends evolve, the fast-casual and quick service categories are expected to sustain growth, fueled by demand for convenience and high-quality meal options.
EATZ made several strategic moves during the quarter.
New additions include:
- Nathan’s Famous Inc. (NATH): 1,900 shares
- Performance Food Group Co. (PFGC): 1,879 shares
- Sysco Corp. (SYY): 1,883 shares
Exited positions include:
- BJ’s Restaurants Inc. (BJRI)
- Arcos Dorados Holdings Inc. (ARCO)
These changes reflect the fund’s focus on high-growth opportunities while streamlining its portfolio to align with shifting consumer preferences.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| EAT | BRINKER INTERNATIONAL INC | 8.40% |
| BROS | DUTCH BROS INC-CLASS A | 7.26% |
| TXRH | TEXAS ROADHOUSE INC | 6.11% |
| YUMC | YUM CHINA HOLDINGS INC | 5.54% |
| DRI | DARDEN RESTAURANTS INC | 5.53% |
| USFD | US FOODS HOLDING CORP | 5.05% |
| LOCO | EL POLLO LOCO HOLDINGS INC | 4.80% |
| PFGC | PERFORMANCE FOOD GROUP CO | 4.74% |
| CAKE | CHEESECAKE FACTORY INC/THE | 4.72% |
| ARMK | ARAMARK | 4.67% |
As of 12.31.2024. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/eatz. The holdings details are updated each market day.
Market Update
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 five stars for the overall and 3-year rating among 48 funds in Morningstar’s Consumer Cyclical category as of December 31st, 2024.
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.