The fast-food industry may not be as sexy as “A.I. tech stocks” or “flying cars”, but believe me – fortunes have been made through investments in burger-flipping operations.
This morning, I put together an eye-opening scatter plot chart of the fast-food realm:
Picture it like this: the higher up a company, the more their customers are singing their praises.
The further to the right they are, the louder the chatter about their brands and products.
Companies that cozy up in the top-right corner are typically the ones we see shooting to stardom. But right now, only Shake Shack (SHAK) seems to be sneaking towards that coveted spot, with the majority lagging behind in the bottom left.
In other words, the fast-food industry seems to be stuck in a bit of a holding pattern.
But fear not, even though there isn't a standout investment target right now, there's always a gold nugget of insight to be discovered.
Let's unravel the fast-food saga as it currently stands:
First up, our trendsetters Shake Shack (SHAK) and Chipotle (CMG), are clearly leading the race, attracting both consumer attention and affection. What's even more intriguing? Chipotle's stock has even managed to sprint past Shake Shack's, reaching near record highs.
In the midst of this, Chick-fil-A, the ever-popular veteran, flaunts the happiest customer base by a considerable margin. Truly setting the benchmark for what a beloved fast food restaurant looks like.
Now let's talk about the "old guard", our seasoned veterans, McDonalds (MCD), Starbucks (SBUX), Burger King (QSR), and Yum Brands (YUM). They seem to be grappling with a mid-life crisis, struggling with dwindling customer attention and lackluster levels of consumer happiness. But, what if one of these titans manages to break away towards the top right?
That could ignite a tantalizing investment opportunity.
And as always… the moment we see that kind of move, LikeFolio members will be the first to know.