Sector Shift: McDonald’s Peers May Finally Be More Attractive (MCD, YUM, WEN, JACK, CMG)

McDonald’s went on to warn that the challenges are expected to impact the company’s first-quarter operating income growth.

Yum! Brands, Inc. (NYSE: YUM) is up 0.8% at $67.06 against a prior 52-week trading range of $47.15 to $66.65.  Call that a new high!  The Wendy’s Company (NYSE: WEN) is up 0.6% at $4.82 against a 52-week trading range of $4.29 to $5.62. Jack In The Box Inc. (NASDAQ: JACK) is up 0.6% at $23.21 against a 52-week trading range of $18.25 to $24.59.

Chipotle Mexican Grill, Inc. (NYSE: CMG), a former McDonald’s brand, is actually up 1.7% at $398.71 on the day and that is a new all time high as well.

With McDonald’s shares down 3.2% at $96.99, it sure seems as though there may be concern that McDonald’s may not have the ability to endlessly grow its earnings and revenues at the same rate indefinitely through good times and bad.  Keep in mind that the market value here was over $100 billion before today’s drop. Yum’s value was approaching $30 billion and Chipotle’s value was approaching $12.3 billion.

JON C. OGG