Look Out McDonalds!

From Profit Confidential
January 28, 2013 - 11:44am

I’m not a big eater of fast foods, but as a business, this market offers some good opportunities for investors, namely with the top three operators: McDonalds Corporation (NYSE/MCD), YUM! Brands, Inc. (NYSE/YUM!), and rising star Chipotle Mexican Grill, Inc. (NYSE/CMG). The mainstay in the group is McDonalds, but YUM!, comprising Taco Bell, Kentucky Fried Chicken (KFC), and Pizza Hut, offers investors a diversified fast food play. The upstart is Chipotle Mexican Grill, which offers superior growth rates; but this is already discounted in the stock’s higher valuation as compared to the other two companies. A problem we are currently seeing is some slowing in fast food sales in markets outside of the United States, namely China in the case of McDonalds and YUM!, according to my stock analysis. YUM! is currently being investigated by several law firms, accusing the company of intentiona...


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