These 12 Retailers and Restaurants May Still Turn a Profit

The novel coronavirus has slammed the brakes on many retailers. Retail stores and small businesses are mostly closed and only essential businesses remain fully open. Even those that haven't closed still have to deal with social distancing rules, lack of demand for some kinds of items, and people generally being afraid to leave their homes.

Even with all of those problems, some retailers and restaurants have managed to do well. A few have even thrived amidst the chaos.

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Despite having the bulk of its business in the United States and China, Starbucks still earned $0.28 per share in its most-recent quarter. That's down 47% from the previous year, but it's still a pretty impressive achievement for the chain.

With nearly all of its dining rooms closing for at least part of the quarter, the coffee chain managed to shift to a drive-through, delivery, and curbside pickup model. The fact that doing that worked so well speaks to how resilient the brand is and how loyal its customers are.

Walmart has invested heavily in building grocery delivery and curbside pickup. That has helped the chain continue to serve its customers despite the current pandemic. The retailer has been able to adapt and keep people supplied with essentials during these troubled times.

ALSO READ: 3 Reasons Walmart Is Still a Great Stock

While COVID-19 hurt McDonald's, the company still delivered a fairly impressive quarter. It produced earnings per share of $1.47. That's a drop of 15%, but still impressive in a quarter partly impacted by the coronavirus pandemic.

The numbers will be worse in the next quarter, but the chain will likely remain profitable. That's a testament to its investment in mobile ordering, delivery, drive-through, and curbside pickup.

Costco may be the big winner in all of this. The warehouse club reported $1.5 billion in added March sales. That suggests the company added members -- its most important metric, which will leave it stronger after the current crisis ends than it was before it began.

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Amazon has at times struggled to keep up with demand, but it has seen a surge in sales due to people being forced to shelter at home. No company was better suited to deal with this situation and the online leader has dealt with unprecedented demand. That has led to it hiring nearly 200,000 additional workers to keep its warehouses operating.

ALSO READ: Should You Continue Paying for Amazon Prime During the Pandemic?

Grocery chains are thriving despite the pandemic. Kroger has benefited from that trend, which may help its long-term prospects in battling Walmart and Amazon.

Shelter-at-home policies have caused people to take on new projects. That includes painting, gardening, and making minor home repairs (or even major ones). That has been good news for Home Depot which has seen its stores stay busy.

Lowe's and Home Depot essentially carry the same items. Both chains are doing well even though some larger-scale construction has shut down in parts of the country.

ALSO READ: Better Buy: The Home Depot vs. Lowe's

Any store that sells groceries and household essentials has likely done well during the pandemic. Target has done better than most because it offers curbside pickup in many locations and has same-day delivery capacity.

When people have fewer choices for food, they turn to the familiar and convenient. Papa John's has experienced an uptick in business due to the pandemic, and that may help the company move past its fairly recent scandals.

ALSO READ: Papa John Now Owns Only 4% of Papa John's

In many neighborhoods, Dollar General serves as a quasi-grocery store. The chain sells food and other household essentials with most of its customers living within a mile or so of the store they shop at. That's a business model that's likely to be well-rewarded during the current pandemic.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Daniel B. Kline owns shares of Starbucks. The Motley Fool owns shares of and recommends Amazon, Home Depot, and Starbucks. The Motley Fool recommends Costco Wholesale, Domino's Pizza, and Lowe's and recommends the following options: long January 2021 $120 calls on Home Depot, short January 2021 $210 calls on Home Depot, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.