Jim Cramer said that Taco Bell is "integral to the night out." And this, of course, is to say that during times like COVID-19, it might be harder for consumers to have a safe night out, which would then put pressure on Taco Bell.
"COVID may not have changed things completely but it has certainly accelerated changes that were already occurring, particularly when it comes to food consumption. Consumers were already eating more restaurant food off-premise and we expect this to grow as takeout and delivery options gained in popularity during COVID lock-downs. While people will still gather in restaurants, there will likely be an increased demand for other options, including off-premise, delivery or the ability to digitally order your food. This isn't a big deal for quick-service restaurant chains such as Burger King, Chipotle and McDonald's as 80%-plus of their sales mix already comes from off-premise dining. However, any further shift to takeout and delivery will be more difficult for casual diners like Cheesecake Factory and Chili's as 80%-plus of their sales mix is dine-in. Finally, while it has yet to occur, we think there is a good chance that virtual-only competitors will begin to emerge in the restaurant space," wrote UBS analysts on the consumer and how they're approaching food during COVID-19.