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.
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:
Restaurant ETF | Ticker Symbol | Market Value/Assets Under Management (AUM) | ETF Description |
|---|---|---|---|
AdvisorShares Restaurant ETF | $1.8 million | The only pure-play ETF in the restaurant sector. | |
Invesco Leisure and Entertainment ETF | $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 | $20.7 billion | This ETF holds shares of consumer discretionary companies in the S&P 500 index. | |
State Street SPDR S&P Retail ETF | $446.6 million | This fund holds shares of retail companies, including food retailers. | |
First Trust Nasdaq Food & Beverage ETF | $20.1 million | This ETF holds shares of U.S. food and beverage companies. |
Here's a closer look at these restaurant ETFs.
1. AdvisorShares Restaurant ETF
2. Invesco Leisure and Entertainment ETF
NYSEMKT: PEJ
Key Data Points
3. The Consumer Discretionary Select Sector SPDR Fund
The Consumer Discretionary Select Sector SPDR Fund (XLY +0.81%) allows investors to focus on the consumer discretionary sector of the S&P 500 index. These companies depend on consumer spending. The ETF had almost 50 holdings in early 2026 in the following industries:
- Broadline retail: 24.2%
- Hotels, restaurants, and leisure: 24.3%
- Specialty retail: 22%
- Automobiles: 20.8%
- Household durables: 3.5%
- Textiles, apparel, and luxury goods: 3.2%
- Distributors: 0.5%
- Auto components: 0.3%
- Leisure products: 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 4.5% and Starbucks (SBUX -0.87%) at 2.7%. The fund has an ultra-low expense ratio of 0.08%.
4. State Street SPDR S&P Retail ETF
NYSEMKT: XRT
Key Data Points
The State Street SPDR S&P Retail ETF (XRT -0.13%) 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
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.
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.
Related investing topics
FAQ
FAQs on investing in restaurant ETFs
About the Author
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.
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