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 (often with an annual yield of less than 1%).

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 an ETF that holds some restaurant stocks.

Can restaurant ETFs be held in retirement accounts?

Yes, you can hold ETFs that invest in restaurant stocks (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 food industry or consumer discretionary sector, 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 (e.g., McDonald's and Starbucks) are typically included in almost all ETFs that hold restaurant stocks.

5 Best Restaurant ETFs for 2026 and How to Invest

A closer look at ETFs focused on this popular sector.

By Matthew DiLallo – Updated Sep 8, 2026 at 1:40 PM EST | Fact-checked by Frank Bass

+Fool.comon

Key Points

There's no longer any dedicated options since the AdvisorShares Restaurant ETF closed in May 2026.
Top ETF picks with restaurant exposure include VCR and PEJ, offering diversification across restaurants and other adjacent sectors.
Investors must review a fund's holdings, as exposure to the restaurant sector varies significantly.

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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

Since no ETF focuses exclusively on restaurant stocks anymore, the funds below offer different ways to invest in the sector. Some focus on general consumer spending, while others focus on retail or food and beverage suppliers. Their exposure ranges widely, so it's important to see what the fund actually invests in before adding it to your portfolio.

Here are five ETF options with exposure to the restaurant sector, ranked by fund quality and industry concentration:

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Ticker Information Table
Name and ticker	Current price
Vanguard World Fund - Vanguard Consumer Discretionary ETF (NYSEMKT:VCR)	$384.04
Invesco Exchange-Traded Fund Trust - Invesco Leisure And Entertainment ETF (NYSEMKT:PEJ)	$63.77
Select Sector SPDR Trust - State Street Consumer Discretionary Select Sector SPDR ETF (NYSEMKT:XLY)	$113.99
SPDR Series Trust - State Street SPDR S&P Retail ETF (NYSEMKT:XRT)	$85.70
First Trust Exchange-Traded Fund VI - First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG)	$22.76

Data as of Sep 9, 2026. Showing 5 of 5 total entries.

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1. Vanguard Consumer Discretionary ETF

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NYSEMKT: VCR

Vanguard World Fund - Vanguard Consumer Discretionary ETF

Today's Change

(-0.85%) $-3.30

Current Price

$384.04

Key Data Points

AUM

$6.6B

Dividend Yield

0.75%

Expense Ratio

0.09%

Top Holdings

AMZN

22.92%

TSLA

13.02%

4.93%

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The Vanguard Consumer Discretionary ETF (VCR -0.85%) tracks an index seeking to measure the investment return of stocks in the consumer discretionary sector. The fund had $6.6 billion in assets under management (AUM) across 279 holdings in early September 2026.

About 10% of the fund's net assets were in restaurant stocks. Notable restaurant-related holdings included:

McDonald's (MCD +0.05%): The fund's fourth-largest holding at 2.9% of its assets.
Starbucks (SBUX -2.35%): Seventh largest holding at 1.8%.
DoorDash (DASH -5.33%): 1.2%.
Chipotle Mexican Grill (CMG +0.00%): 0.8%
Yum! Brands (YUM -0.80%): 0.7%

It offers broad exposure to consumer discretionary spending at a low cost. Because it's an index fund, this ETF has an expense ratio of just 0.09%. The ETF also offers some passive income, with a 0.8% yield as of early September 2026.

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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

(-1.57%) $-1.02

Current Price

$63.77

Key Data Points

AUM

$369M

Dividend Yield

0.52%

Expense Ratio

0.58%

Top Holdings

SBUX

5.21%

SYY

5.06%

DAL

5.06%

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The Invesco Leisure and Entertainment ETF (PEJ -1.57%) held around $370 million in AUM across 31 leisure and entertainment companies, including those engaged in designing, producing, or distributing goods and services. The fund doesn't focus solely on restaurants. It had the following sector allocation in early September 2026:

Hotels, restaurants, and leisure: 59.3%
Entertainment: 21.4%
Consumer staples distribution & retail: 11.6%
Media: 5.2%
Interactive media & services: 2.4%

The fund held the following restaurant and food stocks:

Starbucks: The ETF's largest holding at 5.2% of the fund's assets
Wholesale restaurant food distributor Sysco (SYY -0.26%): Second-largest holding at 5.1%
The world’s largest independent McDonald's (MCD +0.05%) franchisee, Arcos Dorados Holding (ARCO +0.12%): Ninth-largest holding at 2.9%
Food-related technology platform Maplebear d/b/a Instacart (CART -6.01%): 2.9%
Restaurant supplier U.S. Foods Holding: 2.8%
The Cheesecake Factory (CAKE -0.34%): 2.7%
Cracker Barrel Old Country Store (CBRL -3.53%): 2.7%
Tim Hortons, Burger King, Popeyes, and Firehouse Subs owner Restaurant Brands International (QSR -2.37%): 2.7%
BJ's Restaurants (BJRI +1.99%): 2.6%

Overall, the fund offers a diversified way to invest in the entertainment and leisure industry. The ETF had an expense ratio of 0.58% and offered a 0.4% yield as of early September 2026.

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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

(-0.80%) $-0.92

Current Price

$113.99

Key Data Points

AUM

$23B

Dividend Yield

0.98%

Expense Ratio

0.08%

Top Holdings

AMZN

24.67%

TSLA

16.92%

5.43%

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The Consumer Discretionary Select Sector SPDR Fund (XLY -0.80%) allows investors to focus on the consumer discretionary sector of the S&P 500 index. These companies depend on consumer spending. The ETF had over $22.3 billion in AUM across 47 holdings in early September 2026 in the following industries:

Hotels, restaurants, and leisure: 25.9%
Broadline retail: 25.8%
Specialty retail: 20.4%
Automobiles: 20.4%
Household durables: 3.6%
Textiles, apparel, and luxury goods: 2.7%
Distributors: 0.5%
Leisure products: 0.3%
Auto components: 0.3%

Because of its diversification, this ETF doesn't offer as much exposure to the restaurant sector as the other ETF options. However, it does count two in its top 10 holdings: McDonald's at 4.0% and Starbucks at 3.0%. DoorDash was also a top-ten holding at 2%. The fund has an ultra-low expense ratio of 0.08% and yields 0.8%.

4. State Street SPDR S&P Retail ETF

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NYSEMKT: XRT

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

Today's Change

(-2.16%) $-1.89

Current Price

$85.70

Key Data Points

AUM

$282M

Dividend Yield

0.79%

Expense Ratio

0.35%

Top Holdings

ANF

2.37%

HZO

2.17%

1.81%

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The State Street SPDR S&P Retail ETF (XRT -2.16%) 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 had nearly $442 million in AUM spread across 75 holdings in early September 2026. Maplebear (Instacart) was in the top 10 (ninth-largest at 1.7%). It had an expense ratio of 0.35% and a yield of 0.9%.

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

(-0.32%) $-0.07

Current Price

$22.76

Key Data Points

AUM

$18M

Dividend Yield

2.53%

Expense Ratio

0.60%

Top Holdings

ADM

10.17%

8.96%

KHC

8.38%

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The First Trust Nasdaq: Food & Beverage ETF (FTXG -0.32%) invests in U.S. food and beverage companies. The tiny ETF only had $18.3 million in AUM across 30 holdings in early September 2026 in the following industries:

Food products: 42.8% of its holdings.
Soft drinks: 28.4%
Fruit and grain processing: 14.4%
Farming, fishing, ranching, and plantations: 9.1%
Brewers: 3.4%
Distillers and vinters: 1.9%.

While this fund doesn't directly hold any restaurant stocks, it invests in several companies that supply food and beverages to the restaurant industry, including Coca-Cola (KO +0.33%), Kraft Heinz (KHC +0.20%), and U.S. Food Holdings. While it had a higher ETF expense ratio of 0.6%, it also offered a much higher yield of 2.5%.

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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 the broader consumer discretionary industry or food stocks provides diversified 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:

No pure-play options: There are no longer any pure-play restaurant ETFs.
Costs: ETF managers charge expense ratios that can eat into an investor's return.
Underperformance potential: ETFs can underperform the top restaurant stocks.

Methodology: How these ETFs were chosen

Since there are no longer any pure-play restaurant ETFs, I had to look beyond the sector to find ETFs for your consideration. I sought out ETFs with exposure to either the restaurant sector or discretionary consumer spending on food. I evaluated these funds based on their size, costs, and exposure to the restaurant trend.

Should you invest in restaurant ETFs?

There are no longer any ETFs focused solely on restaurant stocks, leaving investors without any pure-play options. However, a fund focused on consumer discretionary spending or the food industry allows you to invest broadly in the expected continued growth in dining out. Alternatively, you might consider building your own mini-restaurant ETF by investing in a basket of the top restaurant stocks.

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Investing in restaurant ETFs: FAQ

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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.

5 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. Vanguard Consumer Discretionary ETF

Key Data Points

2. Invesco Leisure and Entertainment ETF

Key Data Points

3. The Consumer Discretionary Select Sector SPDR Fund

Key Data Points

4. State Street SPDR S&P Retail ETF

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:

Methodology: How these ETFs were chosen

Should you invest in restaurant ETFs?

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Investing in Restaurant Stocks

Investing in restaurant ETFs: FAQ

Are restaurant ETFs a good investment?

Do restaurant ETFs pay dividends?

How to invest in the food industry?

Can restaurant ETFs be held in retirement accounts?

Are restaurant ETFs affected by inflation?

How do restaurant ETFs differ from individual restaurant stocks?

What is the best restaurant chain to invest in?

Which companies are typically included in a restaurant ETF?

1. Vanguard Consumer Discretionary ETF

2. Invesco Leisure and Entertainment ETF

3. The Consumer Discretionary Select Sector SPDR Fund

How to buy restaurant ETFs

Benefits and risks of investing in restaurant ETFs:

Methodology: How these ETFs were chosen

Should you invest in restaurant ETFs?

Related investing topics

5 top restaurant ETFs for 2026

4. State Street SPDR S&P Retail ETF

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

5. First Trust Nasdaq Food & Beverage ETF