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2 Top Food Delivery Stocks With Rising Website Traffic

TipRanks - Tue Jun 21, 1:12AM CDT

The food delivery market in the United States and globally has expanded impressively over the years. The growth was compelling in the pandemic-hit years of 2020 and 2021, with the momentum still solid for the market participants.

Many veteran players in the restaurant business have ventured into online food delivery, and many new players have also cropped up as professional delivery agents between food suppliers and consumers.

According to the Statista report, the online food delivery market in the United States is likely to generate $66.56 billion in revenues in 2022. Of this, $34.24 billion in revenues are forecast to come from platform-to-consumer delivery. The revenues of this market are forecast to grow by 9.69% CAGR to $96.37 billion from 2022 to 2026.

Investors interested in the online food delivery market may find the TipRanks Website Traffic Tool very useful in identifying the top players in the space. The traffic-related data used in the tool is provided by SEMrush Holdings (NYSE: SEMR), a leader in website usage monitoring services.

According to the Website Traffic tool, the two top players (by market capitalization) in the food delivery market are discussed below.

McDonald’s Corporation (NYSE: MCD)

The $173.4 billion company is a fast-food giant, operating through its chain of more than 40,300 restaurants worldwide. It is known for its delicious menu, including burgers, fries, and other products, as well as its food quality and zeal to innovate.

Over time, the company has strengthened its growth opportunities through digital means. Its revenues from this area totaled $18 billion in 2021 and $5 billion in Q1 2022.

Also, nearly 80% of McDonald’s restaurants have started delivery services. Orders can be booked through the company’s app (available in the UK and will be launched in Canada, the United States, and Australia in 2022) or through food aggregators including DoorDash, Inc. (NYSE:DASH) and others.

The impact of the growing use of digital means and online ordering of foods is visible in the increased number of visits to the company’s website. Per the TipRanks Website Traffic tool, the estimated footfalls to MCD’s website (mcdonalds.com) have increased by 146.82% year-over-year in May 2022, at the time of writing.

Moreover, the website traffic has grown 161.5% quarter-to-date and 223.87% so far in 2022.

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Besides, the bullishness over the stock’s growth prospects is evident from its Strong Buy consensus rating based on 22 Buys and four Holds. MCD’s price target of $279.33 suggests a 19.19% upside potential from current levels. Over the past year, shares of MCD have inched up 0.6%.

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Starbucks Corporation (NASDAQ: SBUX)

The $82.4-billion company is a well-renowned coffeehouse chain across the globe. In addition to coffee, the company offers tea and more beverages and food products like sandwiches, salads, and pastries, and operates a chain of more than 34,000 stores worldwide.

The company is investing heavily to enhance its technology and boost the sales of its products through expanded digital customer relationships. Online ordering and fast deliveries have been beneficial.

At the time of writing, the total estimated visits to Starbucks’ website had increased 123.9% year-over-year in May 2022. Besides, a 40.94 increase in website traffic has been recorded quarter-to-date and an 80.5% growth since the beginning of 2022.

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Currently, the company has a Moderate Buy consensus rating based on 12 Buys and nine Holds. SBUX’s price forecast of $93.62 suggests a 30.3% upside potential from current levels. Over the past year, shares of SBUX have decreased by 35.2%.

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Conclusion

Surging demand and shifts in consumers’ preferences have propelled demand in the food delivery market. The players are strengthening their competitive strengths to leverage pent-up demand and expand market share.

From multiple investment choices, the TipRanks Website Traffic Tool can help investors select companies with sound growth prospects.

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Paid Post: Content produced by TipRanks. The Globe and Mail was not involved, and material was not reviewed prior to publication.