EATZ: 4th Quarter 2021 Portfolio Review
Commentary
While the Fund’s overall performance is largely tied to the success of the restaurant industry, we aim for relative outperformance through good individual security selection and successful trading.
New Positions:
Only one new addition to the portfolio during the quarter: Sweetgreen, Inc. (NYSE: SG). Of course, over the three-month period, we did add on to multiple positions while trimming others that were less attractive.
Contributors / Detractors:
During this continued difficult time for the industry, the losers continued to outnumber winners. However, some of our largest holdings were among the best contributors. Del Taco (NASDAQ: TACO) gained over 43% on buyout news. Large holding RCI Hospitality (NNASDAQ: RICK was up 13.75%. Domino’s Pizza (NYSE: DPZ) gained over 18%, while Papa Johns was also a gainer. We just added One Group Hospitality (NASDAQ: STKS) at the end of September and it gained 17.96% for the quarter.
Losers were mostly from big chains or technology-based. Most were not large holdings. DoorDash and Just Eat Takeaway were down; and Bloomin Brands, Brinker, and Cheesecake Factory were among the most significant negatives.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| RICK | RCI HOSPITALITY HOLDINGS INC | 7.15% |
| PZZA | PAPA JOHN’S INTL INC | 5.77% |
| DPZ | DOMINO’S PIZZA INC | 5.69% |
| TACO | DEL TACO RESTAURANTS INC | 5.42% |
| PLAY | DAVE & BUSTER’S ENTERTAINMEN | 4.99% |
| WING | WINGSTOP INC | 4.86% |
| STKS | ONE GROUP HOSPITALITY INC/TH | 4.71% |
| FRGI | FIESTA RESTAURANT GROUP | 4.14% |
| DRI | DARDEN RESTAURANTS INC | 4.10% |
| BLMN | BLOOMIN’ BRANDS INC | 4.01% |
As of 12.31.2021. 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.
Dan Ahrens
AdvisorShares
AdvisorShares Restaurant ETF (EATZ) Portfolio Manager
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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, 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