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By Susannah Kopecky

Contributor, Stock Traders Daily

 

Monday was the day of the banks. This week may be forecast as the week of the fast-food chains. It may come as a surprise that one share of McDonald’s Corporation (NYSE:MCD) stock is currently priced at $55.16, up $1.96 (368%) from the previous day. It’s been all over the news; as times get tough for many businesses, business booms for lower-cost food providers. As major institutions loom on the edge of bankruptcy, this is one business that recently announced plans to build 1,000 new restaurants.

McDonald’s hasn’t been the only business to boom in recent days, however; other stocks doing favorably as well.

Yum! Brands, Inc. (NYSE:YUM) is one stock to keep a particularly keen eye on. The owner behind such monster chains as Taco Bell, Kentucky Fried Chicken and Pizza Hut has been seeing a phenomenally successful showing. Yum! Brands will also be opening hundreds of new restaurants this year. A single share of this stock is currently valued at $28.59 (up $1.98 from the previous trading period). According to a recent analysis by the Market Intelligence Center, this stock could provide a greater-than 25% annual rate of return.

Chipotle Mexican Grill, Inc. (NYSE:CMG) is an incredibly popular destination as well. The price of a single share of this stock is $63.83, $2.72 (or +4.45%) higher than at the previous trading day. Chipotle continues to expand with new restaurant openings, and have proven itself as a popular destination for Mexican food, rivaling similar restaurants such as Taco Bell (part of Yum! Brands).

Papa John’s International, Inc. (NASDAQ:PZZA) has experienced a steady increase in value since a November 2008 showing of $13.11 per share of stock. Papa John’s stock is currently valued at $24.42 per share, up $1.32 (+5.71%) from only one trading day earlier.

Burger King Holdings, Inc. (NYSE:BKC) is currently valued at $23.89 per share of stock, rising $1.47 (or 6.56%) in one day. Generally rising incrementally during February and March, this stock has ebbed and flowed as well, and is currently valued at less than half that of competitor McDonald’s and about one-third the value of fellow chain-restaurant Chipotle. However, with well-above 10,000 nationwide locations, if the current trend of increased business for chain restaurants keeps up, this company, too, may continue to reap the benefits. Unfortunately for investors, popular fast-food chains Subway and In ‘N Out remain privately-held. 

Like theaters, such as those owned by Regal Entertainment Group (NYSE:RGC) and Cinemark Holdings, Inc. (NYSE:CNK), lower-cost restaurants are seeing surprising positive trends in the current economic climate.

Thomas Kee, CEO and President of Stock Traders Daily, noted that during times like these, consumers are looking for “the most cost-effective means,” which can also mean putting price above “health concerns… Fortunately many of these fast food chains have added healthier items to their menus. In this recession, hopefully consumers will take advantage of it.”

Even vegetarians are in luck, as many of the most popular fast-food chains have begun offering salads as meals.

 
 

 

 

 

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