Are restaurant ETFs a good investment?

Restaurant ETFs can be a good investment, especially for those who want to invest broadly in the growth of that sector and consumer spending. They can help mitigate some of the risks associated with investing in a single restaurant stock (e.g., mismanagement, financial issues, a health scare). However, they aren't without risk, as they can underperform the top restaurant stocks.

Do restaurant ETFs pay dividends?

Yes, most restaurant ETFs pay dividends (either quarterly or annually). However, they have historically been very small (much less than a 1% annual yield).

How to invest in the food industry?

There are many ways to invest in the food industry. You can buy shares of a publicly traded restaurant company (e.g., McDonald's), invest in a key sector supplier (e.g., Sysco), buy a cold storage REIT (e.g., Lineage), or invest in a restaurant ETF.

Can restaurant ETFs be held in retirement accounts?

Yes, you can hold restaurant ETFs (and most other ETFs) in retirement accounts.

Are restaurant ETFs affected by inflation?

Inflation can affect restaurant ETFs. It increases the costs of restaurants (food and labor), which can eat into their profit margins. That can weigh on the returns of restaurant stocks and the value of restaurant ETFs.

How do restaurant ETFs differ from individual restaurant stocks?

Buying an individual restaurant stock provides you with direct exposure to that company's upside and downside potential. Restaurant ETFs, on the other hand, invest broadly in the restaurant sector or the food industry, enabling you to spread risk over many more holdings.

What is the best restaurant chain to invest in?

McDonald's is the best restaurant chain stock to invest in for stable growth and dividends, while Chipotle Mexican Grill (NYSE: CMG), Wingstop (NASDAQ: WING), and Cava (NYSE: CAVA) are best for investors seeking higher growth potential.

5 Best Restaurant ETFs to Buy in 2026

A closer look at ETFs focused on this popular sector.

By Matthew DiLallo – Updated Feb 6, 2026 at 1:46 PM EST | Fact-checked by Frank Bass

Key Points

Restaurant ETFs offer broad sector exposure, reducing risk while capturing industry growth.
By 2025, restaurant sales are projected to hit $1.5 trillion due to consistent consumer dining habits.
Investors should evaluate restaurant ETFs for fit, considering factors like focus and expense ratios.

Restaurant ETFs are exchange-traded funds (ETFs) that allow investors to broadly diversify their portfolios across the restaurant industry. That enables investors to benefit from the sector's growth while reducing risk.

Americans’ appetite for dining out remains strong, with restaurant industry sales projected to reach $1.5 trillion in 2025, according to the National Restaurant Association. That demand supports a positive long-term outlook for restaurant stock, even though the industry can be sensitive to the economy, inflation, and labor costs.

The industry's long-term growth prospects bode well for restaurant stocks. However, the restaurant industry can be challenging since the economy, inflation, labor market, and other external and internal factors can affect performance.

For investors who want exposure while managing company-specific risk, restaurant-focused ETFs can provide a broad-based approach. Here’s a closer look at several ETFs with high concentrations of restaurant stocks.

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Data source: ETF websites. NOTE: Market Value/AUM as of Jan. 7, 2026.

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NYSEMKT: EATZ

AdvisorShares Trust - AdvisorShares Restaurant ETF

Today's Change

(-0.28%) $-0.07

Current Price

$26.20

Key Data Points

Day's Range

$26.20 - $26.20

52wk Range

$24.19 - $31.61

Volume

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The AdvisorShares Restaurant ETF (EATZ -0.28%), launched in 2021, is the only ETF solely focused on investing in the restaurant and food industry. The ETF's holdings include restaurants, bars, pubs, fast food, takeout facilities, and food catering services. This ETF also features a creative ticker symbol (EATZ) and a catchy mission that allows investors to "put your money where your mouth is."

As of early 2026, the ETF held more than 20 restaurant stocks, led by the following five:

Brinker International (EAT -3.05%): 7.5% of the fund's holdings.
Casey's General Stores (CASY +3.66%): 6.9%
Dutch Bros (BROS -2.56%): 6.7%
Nathan's Famous (NATH +0.15%): 5.9%
El Pollo Loco (LOCO +1.27%): 5.8%

Because of its short operating history, this ETF is quite small, making it riskier than other ETFs with restaurant holdings.

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2. Invesco Leisure and Entertainment ETF

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NYSEMKT: PEJ

Invesco Exchange-Traded Fund Trust - Invesco Leisure And Entertainment ETF

Today's Change

(0.17%) $0.10

Current Price

$58.61

Key Data Points

Day's Range

$58.30 - $59.24

52wk Range

$41.08 - $62.67

Volume

14K

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The Invesco Leisure and Entertainment ETF (PEJ +0.17%) holds more than 30 leisure and entertainment companies, including those engaged in designing, producing, or distributing goods and services. As a result, the fund doesn't focus solely on restaurants. It had the following sector allocation in early 2026:

Hotels, restaurants, and leisure: 42.2%
Entertainment: 24.9%
Airlines: 10.7%
Consumer staples distribution & retail: 9.9%
Media: 5.2%
Ground transportation: 4.6%
Interactive Media & Services: 2.5%

The fund held the following restaurant stocks:

Steak 'n Shake and Western Sizzlin' owner Biglari Holdings (BH +1.31%): 3.3%
Restaurant delivery company DoorDash (DASH -1.17%): 5.6%
Wholesale restaurant food distributor Sysco (SYY +0.55%): 4.5%
Restaurant technology platform Maplebear d/b/a Instacart (CART +0.19%): 2.8%
Restaurant supplier US Foods Holding (USFD +1.51%): 2.5%

Overall, the fund is a larger, more diversified way to invest in the entire entertainment and leisure industry rather than focusing solely on the expected growth in restaurant spending.

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3. The Consumer Discretionary Select Sector SPDR Fund

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NYSEMKT: XLY

Select Sector SPDR Trust - State Street Consumer Discretionary Select Sector SPDR ETF

Today's Change

(0.96%) $1.05

Current Price

$110.73

Key Data Points

Day's Range

$110.10 - $111.91

52wk Range

$86.55 - $125.01

Volume

9.4M

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NYSEMKT: XRT

SPDR Series Trust - State Street SPDR S&P Retail ETF

Today's Change

(0.91%) $0.72

Current Price

$80.06

Key Data Points

Day's Range

$78.81 - $80.83

52wk Range

$61.33 - $91.65

Volume

4.4M

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The State Street SPDR S&P Retail ETF (XRT +0.91%) provides exposure to the retail sector. That includes apparel, automotive, broadline, computer and electronic, consumer staples merchandise, drug, food, and other specialty retail.

The fund held shares of more than 70 companies in early 2026.

5. First Trust Nasdaq Food & Beverage ETF

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NASDAQ: FTXG

First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF

Today's Change

(0.53%) $0.12

Current Price

$21.88

Key Data Points

Day's Range

$21.62 - $21.89

52wk Range

$20.43 - $23.94

Volume

42K

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The First Trust Nasdaq: Food & Beverage ETF (FTXG +0.53%) invests in U.S. food and beverage companies. The ETF had 30 holdings in early 2026 across the following industries:

Food products: 46.1% of holdings.
Soft drinks: 23.9%
Fruit and grain processing: 13.9%
Farming, fishing, ranching, and plantations: 10.9%
Brewers: 3.9%
Distillers and vinters: 1.4%.

While this fund doesn't directly hold any restaurant stocks, it invests in several companies that provide food and beverages to the restaurant industry.

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FAQs on investing in restaurant ETFs

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in DoorDash and Starbucks and has the following options: short March 2026 $75 puts on Starbucks. The Motley Fool has positions in and recommends Biglari, DoorDash, Dutch Bros, Starbucks, and Sysco. The Motley Fool recommends Casey's General Stores and Instacart. The Motley Fool has a disclosure policy.

Best Restaurant ETFs to Buy in 2026: Do They Fit Your Portfolio?

A closer look at ETFs focused on this popular sector.

Key Points

Key Data Points

2. Invesco Leisure and Entertainment ETF

Key Data Points

3. The Consumer Discretionary Select Sector SPDR Fund

Key Data Points

Key Data Points

5. First Trust Nasdaq Food & Beverage ETF

Key Data Points

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Investing in Restaurant Stocks

FAQs on investing in restaurant ETFs

Are restaurant ETFs a good investment?

Are restaurant ETFs a good investment?

Do restaurant ETFs pay dividends?

Do restaurant ETFs pay dividends?

How to invest in the food industry?

How to invest in the food industry?

Can restaurant ETFs be held in retirement accounts?

Can restaurant ETFs be held in retirement accounts?

Are restaurant ETFs affected by inflation?

Are restaurant ETFs affected by inflation?

How do restaurant ETFs differ from individual restaurant stocks?

How do restaurant ETFs differ from individual restaurant stocks?

What is the best restaurant chain to invest in?

What is the best restaurant chain to invest in?

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

FAQs on investing in restaurant ETFs

Are restaurant ETFs a good investment?

Are restaurant ETFs a good investment?

Do restaurant ETFs pay dividends?

Do restaurant ETFs pay dividends?

How to invest in the food industry?

How to invest in the food industry?

Can restaurant ETFs be held in retirement accounts?

Can restaurant ETFs be held in retirement accounts?

Are restaurant ETFs affected by inflation?

Are restaurant ETFs affected by inflation?

How do restaurant ETFs differ from individual restaurant stocks?

How do restaurant ETFs differ from individual restaurant stocks?

What is the best restaurant chain to invest in?

What is the best restaurant chain to invest in?

Best Electric Vehicle (EV) Stocks to Buy in 2026

Best E-Commerce Stocks to Buy in 2026 and How to Invest in Them

Best Travel and Tourism Stocks for 2026 and How to Invest

Investing in Restaurant Stocks

Top restaurant ETFs to consider

1. AdvisorShares Restaurant ETF

2. Invesco Leisure and Entertainment ETF

3. The Consumer Discretionary Select Sector SPDR Fund

Advantages and risks of investing in restaurant ETFs

Key factors to consider when choosing restaurant ETFs

Related investing topics

FAQ

Key Data Points

4. State Street SPDR S&P Retail ETF

Key Data Points

Key Data Points

Key Data Points

Key Data Points

5. First Trust Nasdaq Food & Beverage ETF