EATZ: 2nd Quarter 2024 Portfolio Review
Portfolio
EATZ ended the first quarter on a positive note, with a 1.63% rise in its net asset value (NAV). The portfolio performed well during the quarter, although it fell behind the S&P 500, which saw a 4.28% increase.
Winners and Losers
Top performers in the quarter included Brinker International Inc. (EAT) with an impressive 45.71% increase, Cava Group Inc. (CAVA) up by 32.41%, and Dutch Bors Inc. (BROS) with a gain of 25.45%.
On the flip side, the significant detractors from the portfolio were Portillos Inc. (PTLO) experiencing a 36.41% decline for the quarter, Dave & Buster’s Entertainment Inc. (PLAY) down 36.41%, and Arcos Dorados Holdings Inc. (ARCO) with a loss of 18.53% for the quarter.
Portfolio
We are seeing continued growth of the fast-casual segment. These restaurants offer a higher quality dining experience than fast food, but at a lower price point than traditional sit-down restaurants. This segment is expected to continue to grow as consumers seek out convenient, affordable, and high-quality dining options
New Positions
A new holding was established in Portillo’s Inc. (PTLO) with the acquisition of 5,500 shares. On the other hand, positions were removed from the portfolio in Bloomin’ Brands Inc. (BLMN), Potbelly Corp. (PBPB), Red Robin Gourmet Burgers (RRGB), and Starbucks Corp. (SBUX). Various other trades comprised smaller tactical adjustments to the portfolio.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| EAT | BRINKER INTERNATIONAL INC | 7.39% |
| CAVA | CAVA GROUP INC | 7.10% |
| WING | WINGSTOP INC | 6.46% |
| BROS | DUTCH BROS INC-CLASS A | 5.68% |
| CMG | CHIPOTLE MEXICAN GRILL INC | 5.41% |
| ARMK | ARAMARK | 4.85% |
| LOCO | EL POLLO LOCO HOLDINGS INC | 4.83% |
| TXRH | TEXAS ROADHOUSE INC | 4.71% |
| DPZ | DOMINO’S PIZZA INC | 4.36% |
| YUM | YUM! BRANDS INC | 4.26% |
As of 6.302024. 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
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.