McDonald’s

This list is pared based on the advice of Matthew Page and Ian Mortimer of Guinness Atkinson Asset Management. […]

There are two advantages to restaurant stocks in good times.The first is that people have more money to spend, so going out to eat isn't just reserved for special occasions. When times are tight, though, people tend to forego the "luxury" of dining out and buy nicer cuts of meat or brand-name goods at the grocery store and cook at home.Second, it's not about the big splurge. It's about grabbing something on the way home for the family rather than slapping together a meal when you get home. And, the fact that many places that weren't known for healthy eating -- like fast food joints -- are now building quality-focused menus with healthier options.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOverall, fast casual dining has become a "thing," and it has changed what people expect from fast food. It has re-imagined how we can eat well and quickly, and even customize our meals for our personal tastes.Furthermore, delivery options have also changed the landscape -- but that's for another time. * 10 Dividend Stocks to Buy That Are Off to a Fast Start in 2020 So, with that said, let's dive in and focus on these seven delicious restaurant stocks to buy. Restaurant Stocks to Buy: Chipotle (CMG)Source: Northfoto / Shutterstock.com Chipotle Mexican Grill (NYSE:CMG) is one of the pioneers of fast casual dining. It is also one of the pioneers of curating your meal as it's prepared.People love to pick each item that gets rolled into their burrito or put into a bowl. And CMG has had a reputation for buying quality products, like sustainable meat from smaller producers.Recently, it has introduced menu items to go along with the newest diet trends in mind and with sensitivity to gluten and other allergies.And if you have ever seen how big the line can get during popular meal times, CMG has also begun using pick-up service -- using an app you can put on your phone. They also deliver using various app-based delivery companies.Additionally, Chipotle turned in stellar earnings in 2019. All these reasons -- and no more issues with tainted lettuce -- have helped power CMG stock back to the big time.Up 54% in the past year, it has a bright future ahead and is a staple of my Growth Investor recommendations. Wingstop (WING)Source: Eric Glenn/Shutterstock.com Wingstop (NASDAQ:WING) is another story of big growth from a niche market. Like CMG stepping into the game with Mexican fare that took off around the country, WING started about the same time by selling buffalo-style chicken wings in Garland, Texas.Today, it has over 1,350 locations worldwide -- including in Mexico, Colombia, Panama, Singapore, Indonesia, Malaysia, United Arab Emirates, the U.K. and the U.S.Unlike CMG, though, WING is a franchise business. That means the company licenses its name to people who want to start their own Wingstop. Then, they brand it and operate it according to rules set down by the company.Obviously, the world loves a good chicken wing. And that's pretty much what WING sells. However, it doesn't try to please every palate. * 3 Wild Stocks To Wrangle In This Bullish Market So if you want wings and sides, that's what you get -- and it's working. The stock is up 51% in the past 12 months, and it continues to expand. Shake Shack (SHAK)Source: JHENG YAO / Shutterstock.com Shake Shack (NYSE:SHAK) is the newest phenomenon to hit fast casual in a while. New York City restauranteur Danny Meyer caught a tiger by the tail when he opened his first Shake Shack in a NYC park with a hot dog cart in 2001.It was the hot dog stand and burger joint reimagined. It took a high-end view of the simple foods and grew them to another level. And now, there are 168 Shake Shacks in the U.S. and 86 around the rest of the world.That said, it can be argued the Meyer started the new burger movement that's currently happening in the U.S. A decade ago, paying $12 or more for a hamburger was a crazy concept. But now, in every city there's at least one or two burger joints with local or humanely raised beef, free range chickens and veggie burgers. And, great fries.With that, you have Shake Shack to thank -- or curse.The stock is up 41% in the past year, and is a "Buy" in the stock-rating system I use to find great Growth Investor plays. So while its expensive, there's plenty of growth out there for this elegantly simple concept; Especially in the U.S as the economy continues to expand. Papa John's (PZZA)Source: DutchMen / Shutterstock.com Papa John's International (NASDAQ:PZZA) has been on quite a ride since mid-2017, when the founder John Schnatter was ousted as CEO. He had been caught out making inappropriate racial comments more than once, and the board had finally had enough as sales dropped and investors walked.With that, PZZA has been working hard to get out of his shadow. But, they have been making big changes internally as well as rebranding their organization to consumers.In turn, the stock is up 59% in the past year, which shows that progress is underway. And this should be a good pizza year, as deliveries usually spike in an election year when people hunker down for debates or sporting events like the 2020 Summer Olympic Games. * 5 Tech Stocks Vying to Win the AR/VR Race Overall, having made headway before the Super Bowl should help the current quarter's numbers as well. Most important, now that the cloud has lifted, its franchise operations both domestically and globally should get back on track soon too. McDonald's (MCD)Source: ATIKAN PORNCHAIPRASIT / Shutterstock.com McDonald's Corp (NYSE:MCD) has a lot going for it.Granted, for a few years it was touch and go -- having waited a bit too long to upgrade its offerings with new choices for a younger demographic.Even simply deciding to serve breakfast all day was a game changer for this behemoth. And it's size means its impact on the agriculture industry is huge.Also, when it announced that it was moving to cage free eggs, that changed the egg industry. In some ways, it has more power over some agriculture sectors than a national government.Furthermore, on Wall Street, MCD is a blue-chip stock that's also a dividend aristocrat. That means it has raised its dividend every year for more than 25 years in a row. In MCD's case, it's 43 years. That's a key criterion for my Elite Dividend Payers buy list at Growth Investor.Sitting at a 2.3% dividend and growth of 18% last year, this is one of the best long-term growth stories in the industry. Wendy's (WEN)Source: Jonathan Weiss / Shutterstock.com Wendy's Inc (NASDAQ:WEN) is tiny compared to MCD, which has a market capitalization of $162.4 billion. Meanwhile, Wendy's market cap is $5.2 billion.However, WEN is a competitor all the same. In the old days, when it was looking where it wanted to place restaurants, it didn't want to spend the massive money that McDonald's did on market research. So, it would look to see where a McDonald's went in, and then find a spot as close to it as possible.That kind of pragmatism is how it has done so well over the years, and managed to keep its loyal base as well as expand that base.Furthermore, it will soon launch its own breakfast service. It tried this years back and it didn't work well. But, they're going back in and there's some good buzz about it.The point is, WEN is always looking to keep up with the trends. And it can do that a bit more easily than MCD because it's smaller and has remained nimble. * Why 5G Health Concerns Are 'Fake News' Overall, the stock is up 33% in the past year and delivers a solid 2% dividend. And it seems like a great option for investors looking to add restaurant stocks to their portfolio. Aramark (AMRK)Source: Shutterstock Aramark (NYSE:ARMK) is a bit of an oddity in this collection of restaurant stocks, since it's a broader, integrated food service company.It doesn't do restaurant per se. But it offers institutional food services to industry, governments, universities, correctional facilities, state parks, sports arenas and others.But, it also does supply food to restaurants -- and has large uniform and clothing business as well. With that, this is a much more diversified company and operates on a different scale than most of the food service firms here.However, it's an interesting choice because it is the backbone of the food service industry. And it is also starting to build out properties and lease them to restaurants. This is just another avenue into the restaurant business through the back door, and helps build the "moat" around its business that's a hallmark of my Growth Investor recommendations.The point is, ARMK has been around since 1959, has global operations and continues to find new opportunities that fit within its focus. The stock is up 30% in the past year and offers a 1% dividend.That said, it flies a bit under the radar. But it knows that if it can help keep the front doors open for customers, it will always have growing deliveries to the back doors. And I've Got More Where That Came FromGreat restaurant stocks like the ones we discussed just now are rare. It can be a tough business in terms of profit margins. On the other hand, the scalability of a strong technology business is an excellent source of growth investments.In that vein, the 5G wireless infrastructure buildout is an incredible opportunity for investors right now.Within two years, most cell phones will be 5G enabled and be able to wirelessly handle television streaming. With 5G, we'll have cable modem speeds on any device; no need to plug in. That's a big deal for rural areas … the very same areas that are also key to President Donald Trump's reelection. So, by pushing 5G over the goal line, Trump will deliver a big win for his base -- and strike a blow against Chinese rivals like Huawei Technologies.But, in the big picture, 5G is about much more than trade wars and faster downloads. Because 5G is 100 times faster than 4G, it'll allow your internet devices to work in real time. That advancement is a game changer for tech companies.With the 5G infrastructure market set to grow at an annual rate of 67% over the next 10 years, the entire market will go from $780 million to nearly $48 billion. This buildout is where I see opportunity with 5G stocks now.Cable companies can do their best to fight back with fiber optics … but they can't compete with the convenience of a smartphone, once it's got ultra-fast 5G. That's how my 5G infrastructure play will capture more market share from the broadband cable companies.The stock I'm targeting is enjoying an influx of big money on Wall Street, and it has strong fundamentals, too -- making it an "A"-rated "Strong Buy" in my Portfolio Grader system.Click here to watch my new, free briefing on this extraordinary technology and the opportunity with 5G stocks.When you do, you'll see how to claim a free copy of my new investment report, The Netflix of 5G, which has full details on this company -- and what makes it such a great buy now.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In one recent feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 7 Delicious Restaurant Stocks to Buy appeared first on InvestorPlace. […]

Back in September, I wrote about how the biggest problem with Beyond Meat (NASDAQ:BYND) stock is that the market was pricing in too much into the success story. At the time, the stock was trading at around $150. Since then, shares have dropped to around $70, but another surge in January has them back to the $126 level.Source: Shutterstock There is no question Beyond Meat has exceeded expectations. It is, in fact, a success story. But even success stories must be appropriately valued, and Beyond Meat stock is still priced well beyond perfection. Beyond Meat Stock Bubble"Stock market bubble" has a very negative connotation, and rightfully so. However, some of the best companies and markets are the ones that often find themselves in the middle of a bubble.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's natural for stock bulls to push back when critics call a stock's meteoric rise a "bubble" because the insinuation is that the stock is not worth its share price. But just because a stock isn't worth its current share price doesn't mean it's not valuable. * 7 Lessons Businesses Can Learn From the Girl Scouts Back on July 30, 2019, former hedge fund manager Whitney Tilson said Beyond Meat stock was an "obvious bubble." At the time, he predicted the stock price would drop from above $200 to below $100. Within three months, the stock hit his target.Tilson's friend and Valens Securities CIO Joel Litman recently took a second look at Beyond Meat stock after its January rally."As competitors continue to muscle in on the plant-based burger space, it will be hard for Beyond Meat to charge large premiums for its products… which the company will need to do to justify its current valuations," Litman said. The NumbersLitman isn't the only one taking a second look at Beyond Meat stock following its recent rally. Piper Sandler analyst Michael Lavery says Beyond Meat is undoubtedly the early leader in a massive emerging market for plant-based meat products. Unfortunately, the numbers on Beyond Meat just don't add up at this point.Beyond Meat currently has a market cap of more than $7.7 billion. Lavery projects the global plant-based meat market will grow rapidly over the next several years to reach between $6 billion and $8 billion by 2025. In other words, based on Lavery's projections, Beyond Meat is currently valued greater than the entire global market for plant-based meat five years from now.One of the big drivers of Beyond Meat's January rally was news that partner McDonald's (NYSE:MCD) is expanding its PLT burger test to more locations. Once again, nobody is questioning the fact that McDonald's is a major opportunity for Beyond Meat. But the stock added $3.1 billion to its market cap in January. Remember that number."Looking ahead, we expect further distribution gains to drive growth and estimate McDonald's could be a $100M annual opportunity in the US (~$150M globally)," Lavery said.Let's say the PLT is a huge hit for McDonald's. How many years would it take to justify the $3.1 billion in market cap Beyond Meat added?"We see a long runway of growth in the plant-based meat space, but we believe Beyond's valuation has already priced in expected upside from McDonald's distribution," said Levery.Piper Sandler has a "neutral" rating and $115 price target for Beyond Meat stock. The RisksThere are two major problems with stocks like Beyond Meat. The first problem is that, even if you assume the absolute best-case scenario, the stock is fully priced. In other words, assuming a bull-case scenario for the McDonald's partnership, Piper Sandler estimates Beyond Meat is already trading at more than 10 times 2021 revenue projections. Where is the upside?The other major red flag is the fact that the best-case scenario very rarely ends up actually happening.Piper Sandler conducted a survey of 3,500 U.S. adults and asked them if they consume plant-based meats. The problem isn't the number of respondents that haven't. The problem is the 62% of respondents who answered, "No, and I am not interested in it."In other words, Beyond Meat's biggest risk may simply be demand.In the same survey, 60% of respondents said they are more interested in a new chicken sandwich than a meatless burger. At least for now, it seems chicken is the preferred option compared to plant-based burgers.Either way, Beyond Meat investors are in a difficult situation. Assume the best-case scenario plays out over the next few years. Beyond Meat's business may eventually grow into its current valuation. But that would mean little upside from its current share price.If, however, the plant-based meat boom runs into some difficulties along the way, there is some major downside potential.Wayne Duggan has been a U.S. News & World Report Investing contributor since 2016 and is a staff writer at Benzinga, where he has written more than 7,000 articles. Mr. Duggan is the author of the book "Beating Wall Street With Common Sense," which focuses on investing psychology and practical strategies to outperform the stock market. As of this writing, Wayne Duggan does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 S&P 500 Stocks to Buy Increasing Their Dividends in 2020 * 5 Tech Stocks Vying to Win the AR/VR Race * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Beyond Meat Stock Already Priced for Perfection appeared first on InvestorPlace. […]

McDonald's Corp. has unveiled new merchandise for fans of the Quarter Pounder burger, like $25 Quarter Pounder mittens and scented candles. McDonald's has a Quarter Pounder Fan Club, and soon aficionados will be able to buy a six-pack of candles that smell like all of the burger ingredients including pickle, cheese, onion, and 100% Fresh Beef. The candles burn for about 25 hours. A "Quarter Pounder with Love" locket is currently sold out, but promises to return. And if you still need a 2020 calendar, McDonald's has got one for $25. The items are available for a limited time, and on Feb. 26, the city with the most enthusiastic Quarter Pounder fans will get a bronze statue of the burger. McDonald's stock has gained 17.7% over the past year, outpacing the Dow Jones Industrial Average, which is up 13% for the period. […]

Last year, I visited China and I was struck at how much major cities like Shanghai have rapidly modernized. But nowadays, the world's second-biggest economy has been forwarding its own innovations. One is a relatively underappreciated company called Luckin Coffee (NASDAQ:LK). A homegrown rival to global juggernaut Starbucks (NASDAQ:SBUX), LK stock has soared since its initial public offering in May 2019.Source: Keitma / Shutterstock.com As you might imagine, I'm long-term bullish on the organization. But what might surprise some readers is that I'm not bothered by the nearer-term challenges. Of course, I'm referring to the coronavirus from China. While we've seen some sharp volatility in LK stock from last month's highs, I regard any ensuing corrections as buying opportunities. LK Stock Offers a Contrarian DiscountBrowse the blogosphere long enough and you'll come across doom-and-gloom prognostications. Even some mainstream sources are hinting at a dire outcome. But as I've said before, history tends to rhyme, if not outright repeat. Eventually, Chinese and international health authorities will assert control over the outbreak.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGenerally, that's not where sentiment is right now, which explains the sharp drop in LK stock since the second half of January. Yet patient investors should regard this circumstance as a discount. Years from now, you'll thank me for pushing the bullish thesis.Even before the coronavirus outbreak occurred, one of the most compelling arguments for Luckin was its underlying business model. Contrary to Starbucks, Luckin's emphasis has never been about large physical footprints for customers to lounge about. Instead, Luckin focuses on smaller stores, often integrated into corporate buildings and college campuses. Here, the purpose is pickup orders: Get your coffee and leave!Coincidentally, this distinctive business model plays almost perfectly into the coronavirus outbreak. I highly doubt that during a health crisis, our everyday cravings go away. More to the point, millions upon millions of Chinese professionals have to make a living. While they're out grinding away the hours, they might as well pick up a cup of joe.And that's all they're doing -- getting their coffee and heading off to their next destination. Neither the customers nor the workers want unnecessary interaction. And that favors Luckin but not so much SBUX.Further, Luckin is taking its small footprint model to its logical conclusion: smart unmanned vending machines. By the end of last year, the company reported 4,507 self-operating stores. Again, this was a great business choice for fast-paced China without the coronavirus. With it, it's a vital mitigating factor. Behavioral Shift Might Benefit LuckinAs you know, it wasn't until relatively recently that China emerged as a legitimate superpower. But that also means that for many decades, its citizens were deprived of many cultural experiences that the West takes for granted.Thus, mundane acts for us Americans -- such as buying coffee at Starbucks or eating out at McDonald's (NYSE:MCD) -- are what the Chinese regard as status symbols. Particularly, China's millennials and the nation's burgeoning middle class want to show off and flex their financial muscles.But today, that thought process has all but died. The immediate concern is to not get sick. And prancing around in high-density metropolitan areas is simply not in the cards. Again, the emphasis is on the product and how quickly you can get it, not on the experience.This might turn a lot of new customers onto Luckin, especially its unmanned stores. In a strange way, the coronavirus isn't just creating a discounted opportunity in LK stock. It's also one of the main, albeit temporary reasons to actively buy shares.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Failing Tech Stocks to Disconnect From Now * 5 Ideal Dividend Stocks for New Investors * 4 Stocks to Buy No Matter Who Wins the 2020 Election The post The Coronavirus Is a Counterintuitive Gift for Luckin Coffee appeared first on InvestorPlace. […]