Sector Shift: McDonald’s Peers May Finally Be More Attractive (MCD, YUM, WEN, JACK, CMG)
Economic uncertainty, higher food costs, and higher labor costs… Those are not usually supposed to be a worry for the likes of McDonald’s Corporation (NYSE: MCD). After all, it has proven to be the king of all defensive stocks and…
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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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
