EATZ: 1st Quarter 2022 Portfolio Review
For the first quarter of 2022, January 1 through March 31, 2021, the AdvisorShares Restaurant ETF (EATZ) returned -7.06% on its net asset value (NAV) and -7.27% on its market price – slightly more than the S&P 500 Index. The Fund just launched with an inception date of April 20, 2021. As COVID problems seem to be lifting, the restaurant industry has been hampered by lingering supply chain and employment constraints and now – inflation.
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. We sidestepped recent losses by Wingstop (NASDAQ: WING) by removing it from the portfolio earlier in the year.
Three new positions were added to the Fund during the quarter, and all were moved into top 5 positions in the portfolio. We added Arcos Dorados Holdings (NYSE: ARCO), BBQ Holdings (NASDAQ: BBQ), and Dutch Bros Inc (NYSE: BROS). As always over the course of the quarter we added to some other positions while multiple others less attractive.
Contributors / Detractors
Some of our largest holdings were among the best contributors and include the new positions just added ARCO and BROS. ARCO gained over 40%. Top holding Dave and Buster’s (NASDAQ: PLAY) was also up more than 27%. The Fund did hold more losers than gainers during the quarter. Big contributors in previous periods were a drag this quarter. RCI Hospitality (NASDAQ: RICK) was down more than 21%, and Domino’s Pizza (NYSE: DPZ) lost over 27% while pizza competitor Papa John’s (NASDAQ: PZZA) lost over 20%.
|Ticker||Security Description||Portfolio Weight %|
|PLAY||DAVE & BUSTER’S ENTERTAINMEN||9.82%|
|ARCO||ARCOS DORADOS HOLDINGS INC-A||9.79%|
|RICK||RCI HOSPITALITY HOLDINGS INC||8.81%|
|BBQ||BBQ HOLDINGS INC||7.93%|
|BROS||DUTCH BROS INC-CLASS A||6.95%|
|STKS||ONE GROUP HOSPITALITY INC/TH||5.60%|
|PZZA||PAPA JOHN’S INTL INC||4.91%|
|CHUY||CHUY’S HOLDINGS INC||4.80%|
|DPZ||DOMINO’S PIZZA INC||4.42%|
|DRI||DARDEN RESTAURANTS INC||3.89%|
As of 03.31.2022. 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.
Past Manager Commentary