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 restaurant costs (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.

Which companies are typically included in a restaurant ETF?

The largest publicly traded restaurant stocks are typically included in a restaurant ETF.

Best Restaurant ETFs for 2026 and How to Invest

A closer look at ETFs focused on this popular sector.

By Matthew DiLallo – Updated Apr 7, 2026 at 6:58 PM EST | Fact-checked by Frank Bass

Key Points

Restaurant ETFs provide broad exposure to the sector, reducing company-specific risks.
According to the National Restaurant Association, the industry's sales should reach $1.55 trillion in 2026.
Limited pure-play restaurant ETF options exist; most ETFs also include broader consumer discretionary stocks.

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 $1.55 trillion in 2026, according to the National Restaurant Association. That demand supports a positive long-term outlook for restaurants, 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, as the economy, inflation, labor markets, and other external and internal factors can affect performance.

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

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A group of people eating at a restaurant. — Image source: Getty Images.

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5 top restaurant ETFs for 2026

Investors have limited pure-play restaurant ETF options -- only one focuses exclusively on the industry. Most include food stocks, beverage stocks, and consumer discretionary stocks, so it’s worth checking holdings to find the right fit.

Here are some of the top restaurant-focused ETF options:

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Data source: ETF websites. NOTE: Market Value/AUM as of April 7, 2026.
Restaurant ETF	Ticker Symbol	Market Value/Assets Under Management (AUM)	ETF Description
AdvisorShares Restaurant ETF	(NYSEMKT:EATZ)	$1.8 million	The only pure-play ETF in the restaurant sector.
Invesco Leisure and Entertainment ETF	(NYSEMKT:PEJ)	$241 million	This ETF holds companies engaged in the design, production, or distribution of goods or services in the leisure and entertainment industries.
State Street Consumer Discretionary Select Sector SPDR ETF	(NYSEMKT:XLY)	$20.7 billion	This ETF holds shares of consumer discretionary companies in the S&P 500 index.
State Street SPDR S&P Retail ETF	(NYSEMKT:XRT)	$446.6 million	This fund holds shares of retail companies, including food retailers.
First Trust Nasdaq Food & Beverage ETF	(NASDAQ:FTXG)	$20.1 million	This ETF holds shares of U.S. food and beverage companies.

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Here's a closer look at these restaurant ETFs.

1. AdvisorShares Restaurant ETF

NYSEMKT: EATZ

AdvisorShares Trust - AdvisorShares Restaurant ETF

Today's Change

(0.00%) $0.00

Current Price

$0.00

Key Data Points

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The AdvisorShares Restaurant ETF (NYSEMKT:EATZ), launched in 2021, is the only ETF focused solely on 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 lets investors "put your money where your mouth is."

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

Brinker International (EAT +0.43%): 9.8% of the fund's holdings.
U.S. Food Holdings (USFD -0.95%): 6.5%
Casey's General Stores (CASY +0.03%): 6.3%
Restaurant Brands (QSR -1.14%): 5.7%
Krispy Kreme (DNUT -1.80%): 5.6%

Because of its short operating history, this ETF is quite small (with less than $1.9 million in AUM as of mid-2026), making it riskier than other ETFs with restaurant holdings. It also has a rather high ETF expense ratio of 1%.

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2. Invesco Leisure and Entertainment ETF

NYSEMKT: PEJ

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

Today's Change

(0.49%) $0.29

Current Price

$60.61

Key Data Points

Day's Range

$60.34 - $60.84

52wk Range

$52.36 - $64.55

Volume

10.5K

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The Invesco Leisure and Entertainment ETF (PEJ +0.49%) 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: 54.3%
Entertainment: 15.2%
Airlines: 11.2%
Consumer staples distribution & retail: 9.8%
Media: 6.5%
Interactive Media & Services: 3%

The fund held the following restaurant and food stocks:

Steak 'n Shake and Western Sizzlin' owner Biglari Holdings (BH +1.10%): 2.5%
Chili's and Maggiano's Little Italy owner Brinker International: 3%
The world’s largest independent McDonald's (MCD -0.67%) franchisee, Arcos Dorados Holding (ARCO -4.37%): 2.7%
China's largest restaurant company, Yum! China Holdings (YUMC -0.85%): 2.4%
Wholesale restaurant food distributor Sysco (SYY -0.92%): 4.2%
Restaurant technology platform Maplebear d/b/a Instacart (CART +2.77%): 3.2%
Restaurant supplier U.S. Foods Holding: 2.6%

Overall, the fund is a larger, more diversified way to invest in the entire entertainment and leisure industry rather than focusing solely on the restaurant sector. The ETF has an expense ratio of 0.57%.

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3. The Consumer Discretionary Select Sector SPDR Fund

NYSEMKT: XLY

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

Today's Change

(0.40%) $0.48

Current Price

$119.18

Key Data Points

Day's Range

$118.97 - $119.87

52wk Range

$103.86 - $125.01

Volume

5.3M

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NYSEMKT: XRT

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

Today's Change

(0.92%) $0.75

Current Price

$82.54

Key Data Points

Day's Range

$81.69 - $82.61

52wk Range

$74.91 - $91.65

Volume

5.4M

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The State Street SPDR S&P Retail ETF (XRT +0.92%) 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 nearly 75 companies in early 2026, including Maplebear (Instacart). It had an expense ratio of 0.35%.

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

(0.49%) $0.11

Current Price

$22.34

Key Data Points

Day's Range

$22.32 - $22.34

52wk Range

$20.43 - $23.94

Volume

2.3K

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The First Trust Nasdaq: Food & Beverage ETF (FTXG +0.49%) invests in U.S. food and beverage companies. The ETF had 30 holdings in early 2026 across the following industries:

Food products: 46.4% of its holdings.
Soft drinks: 27.2%
Fruit and grain processing: 13.7%
Farming, fishing, ranching, and plantations: 9.6%
Brewers: 4.2%
Distillers and vinters: 1.9%.

While this fund doesn't directly hold any restaurant stocks, it invests in several companies that provide food and beverages to the restaurant industry. It had an ETF expense ratio of 0.6%.

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How to buy restaurant ETFs

Here's a step-by-step guide on investing in restaurant ETFs:

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the restaurant ETF: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in restaurant ETFs:

Benefits:

Diversified exposure: Investing in an ETF focused on restaurant stocks or the broader consumer discretionary industry provides broad exposure across the sector.
Growth: These ETFs enable investors to capitalize on the growth in restaurant sales and consumer spending.
Income: These funds distribute the dividend income collected from their holdings to investors.

Risks:

Limited options: There's only one pure-play restaurant ETF, which is very small.
Costs: ETF managers charge expense ratios that can eat into an investor's return.
Underperformance potential: Restaurant ETFs can underperform a top restaurant stock.

Should you invest in restaurant ETFs?

A restaurant ETF or a fund focused on consumer discretionary spending enables you to broadly invest in the expected continued growth in dining out. However, there's only one small, expensive ETF focused solely on restaurant stocks, leaving investors with rather unappetizing pure-play options. As such, you might want to consider building your own mini-restaurant ETF by investing in a basket of several different restaurant stocks.

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FAQ

FAQs on investing in restaurant ETFs

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, 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 for 2026 and How to Invest

A closer look at ETFs focused on this popular sector.

Key Points

5 top restaurant ETFs for 2026

1. AdvisorShares Restaurant ETF

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

How to buy restaurant ETFs

Benefits and risks of investing in restaurant ETFs:

Should you invest in restaurant ETFs?

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Investing in Restaurant Stocks

FAQ

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?

Which companies are typically included in a restaurant ETF?

Which companies are typically included in a restaurant ETF?

About the Author

Read Next

Stocks Mentioned

Premium Investing Services

5 top restaurant ETFs for 2026

Key Data Points

5. First Trust Nasdaq Food & Beverage ETF

How to buy restaurant ETFs

Benefits and risks of investing in restaurant ETFs:

Should you invest in restaurant ETFs?

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

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?

Which companies are typically included in a restaurant ETF?

Which companies are typically included in a restaurant ETF?

Key Data Points

Key Data Points

4. State Street SPDR S&P Retail ETF

Key Data Points

Key Data Points