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.
Top restaurant ETFs to consider
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 | $3.0 million | The only pure-play ETF in the restaurant sector. | |
Invesco Leisure and Entertainment ETF | $261.0 million | This ETF holds companies engaged in the design, production, or distribution of goods or services in the leisure and entertainment industries. | |
The Consumer Discretionary Select Sector SPDR Fund | $24.5 billion | This ETF holds shares of consumer discretionary companies in the S&P 500 index. | |
State Street SPDR S&P Retail ETF | $520.9 million | This fund holds shares of retail companies, including food retailers. | |
First Trust Nasdaq Food & Beverage ETF | $16.6 billion | This ETF holds shares of U.S. food and beverage companies. |
Here's a closer look at these restaurant ETFs.
1. AdvisorShares Restaurant ETF
NYSEMKT: EATZ
Key Data Points
The AdvisorShares Restaurant ETF (EATZ +2.65%), 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 +5.16%): 7.5% of the fund's holdings.
- Casey's General Stores (CASY +1.21%): 6.9%
- Dutch Bros (BROS +8.89%): 6.7%
- Nathan's Famous (NATH +0.00%): 5.9%
- El Pollo Loco (LOCO +2.24%): 5.8%
Because of its short operating history, this ETF is quite small, making it riskier than other ETFs with restaurant holdings.
2. Invesco Leisure and Entertainment ETF
NYSEMKT: PEJ
Key Data Points
The Invesco Leisure and Entertainment ETF (PEJ +2.51%) 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 +5.54%): 3.3%
- Restaurant delivery company DoorDash (DASH -0.76%): 5.6%
- Wholesale restaurant food distributor Sysco (SYY +2.26%): 4.5%
- Restaurant technology platform Maplebear d/b/a Instacart (CART +0.84%): 2.8%
- Restaurant supplier US Foods Holding (USFD +2.78%): 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.
3. The Consumer Discretionary Select Sector SPDR Fund
NYSEMKT: XLY
Key Data Points
The Consumer Discretionary Select Sector SPDR Fund (XLY +0.41%) 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: 24.6%
- Hotels, restaurants, and leisure: 24.3%
- Automobiles: 22.7%
- Specialty retail: 20.5%
- Textiles, apparel, and luxury goods: 3.6%
- Household durables: 3.2%
- Distributors: 0.6%
- Auto components: 0.4%
- 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 (MCD +1.16%) at 4.3% and Starbucks (SBUX +3.54%) at 2.3%.
4. State Street SPDR S&P Retail ETF
NYSEMKT: XRT
Key Data Points
The State Street SPDR S&P Retail ETF (XRT +2.83%) 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
NASDAQ: FTXG
Key Data Points
The First Trust Nasdaq: Food & Beverage ETF (FTXG +1.16%) 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.
Advantages and risks of investing in restaurant ETFs
Benefits:
- Diversified exposure: Investing in an ETF focused on restaurant stocks or the broader consumer discretionary industry allows for broad investment 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.
Drawbacks:
- 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.
Key factors to consider when choosing restaurant ETFs
Investors considering buying a restaurant ETF should consider the following factors:
- Investment focus: Whether they want a pure play on the restaurant sector or an ETF with broader exposure to discretionary consumer spending.
- Expense ratio: Investors should consider whether the expense ratio is worthwhile.
- Size: Smaller ETFs are riskier investments due to the potential for manipulation and possible closure.
- Performance history: Investors should review how an ETF has performed against common benchmarks.
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