A study from The Physiological Society, shows that junk food can lead to many health problems including kidney damage on par with diabetes. Yet, amazingly, many fast-food outlets are considered “consumer staples”. I argued this point with resident CFA Craig Aucoin here at ValueTrend. How can a high fat hamburger & fries on white bread be considered a “staple”?
Well, to many of us, they are not staples in our lives – but to many others, they are a lifestyle staple. These companies have benefited from a very dedicated and unwavering crowd of regular patrons (and the corresponding cash flow). The bigger fast-food chains are making their customers fat and unhealthy, while their shareholders’ simultaneously earn healthy, fat profits. This, in the face of a stock market that seems to be facing some lean times right now. Perhaps the charts below will help convince you to add some low nutrition food into your portfolio’s diet.
Wendy’s: Nice breakout!
Chipotle: Post food-poisoning rally
Wingstop: Flying high
McDonalds: Big Mac Attack
Restaurant brands: Weak coffee, fatty chicken & Whopper performance
Yum brands: So many ways to indulge
Dominos: A stock that’s had its topping. The only bad news of the group