Displaying items by tag: wendys

(New York)

For the last several weeks, the prospect of a meat shortage has been swirling around the media and markets. However, it had not really become a tangible reality—until now. Wendy’s is apparently running very low on meat, with around 20% of their stores out of beef. Costco is running out of meat too, and is limiting purchases. Meatpacking companies have been suffering too, as their volumes are down.

FINSUM: Trump has already invoked the Defense Production Act to ensure the meat supply, but it is still facing shortages. Something to keep an eye on for restaurants and grocery stores.

(New York)

With the Fed coming in less dovish than expected this week, there is suddenly much more anxiety in the market. Without a clear direction on rates, and with lingering worries about the economy, the outlook for stocks and bonds is not clear. And as we all know, markets hate uncertainty. Accordingly, the search for the best recession-proof stocks continues, and we have a new proposal today: fast food stocks. As consumer spending falls in a recession, bargain-providing companies, like fast food, often do well. The sector also provides healthy dividends. Take a look at the usual suspects: McDonalds, Wendy’s, and Chipotle, and some you may not have thought of, like Cracker Barrel and Restaurant Brands International.

FINSUM: The “Dollar menu” suddenly becomes very attractive to the American consumer when times start getting tough. These stocks seem a good bet, especially because they have solid dividends, which should provide some protection in case a downturn doesn’t happen.