The NCAA’s annual basketball championship tournament also called the “March Madness” is underway. The 77th edition of the tournament began on Mar 17 and will conclude with the championship game on Apr 6 at Lucas Oil Stadium in Indianapolis, IN.
The enthusiasm surrounding the Men's Division I Basketball Tournament is not confined to lovers of the game alone; it garners the interest of the investor community as well. Per media reports, over the past 10 years, stocks across various industries have seen positive returns during this annual sporting extravaganza.
The March Madness is nearing its peak with the round of Sweet Sixteen, and it is no surprise that fast food joints, restaurants and bars are getting more crowded by the day. This three-weekend tournament inevitably leads to a surge in sales at restaurants and businesses associated with the food and beverage industry. Data from online food-ordering service GrubHub Inc. GRUB indicates that the number of workplace orders during weekday games has risen by 7% over the last two years.
Restaurateurs are leaving no stone unturned to capitalize on the frenzy. Buffalo Wild Wings Inc. BWLD, Domino's Pizza, Inc. DPZ, Papa John's International Inc. PZZA, all burger and pizza hubs, are geared up for the final leg of the event.
Over the last 10 years, Buffalo Wild Wings has outperformed the S&P 500 consistently by an average of 5.8% during this time of the year, per Bloomberg. In fact, the company has done a phenomenal job of capitalizing on big sports events.
Domino's Pizza is offering 50% off pizzas that are ordered through its online and mobile platforms through the round of Sweet Sixteen. Pizza Hut, a division of Yum! Brands, Inc. YUM, is offering its 20-year old signature stuffed crust pizza for only $9.99. Meanwhile, it is also running a contest for NCAA fans that could win them a trip to watch the Final Four in Indianapolis. Not only this, but Papa John's has brought back its Philly Cheesesteak Pizza – a favorite just for this college basketball championship.
Meanwhile, Burger King, now a subsidiary of Restaurant Brands International Inc. QSR, is continuing its NCAA partnership with a dedicated TV campaign and on-site activations. Per the deal, the brand is promoting its 2 sandwiches for $5 offer with TV personalities and basketball legends. Guests can mix and match their favorite premium sandwiches including the new Spicy Big Fish Sandwich, Big King Sandwich, Big Fish Sandwich, Original Chicken Sandwich and the Yumbo Hot Ham & Cheese Sandwich at best prices.
If the pizza and burger makers are cashing in on the opportunity, how can the beer and beverage stocks fall behind? People just love their beer and drinks when a basketball game is on, benefiting stocks like Molson Coors Brewing Company TAP and The Coca-Cola Company KO.
The NCAA Tournament consistently ranks among the largest sporting events in the world like the Super Bowl, World Cup and Summer Olympics. With such a large, worldwide audience watching, official NCAA Corporate Champions like AT&T, Inc. T and Capital One Financial Corp. COF and official NCAA Corporate partners, Unilever NV UN and United Parcel Service, Inc. UPS are making sure that their products and services are seen by millions of viewers tuning into the NCAA Tournament.
Meanwhile, media conglomerates like CBS Corp. CBS and Turner Broadcasting System, a subsidiary of Time Warner Inc. TWX broadcasting the games will enjoy high television ratings and advertising revenues from the event.
The tournament is a highly anticipated event and as in the past advertisers, eateries, hotels and casinos are betting big time on the March Madness to get their brands across to a wider customer base.
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