I'd try something new. The market is saturated with crap. I'd suggest Five Guys, but sadly, they've capped their stores in both the U.S. and Canada. This one may be a long shot, but I did hear about this chain called Moo Cluck Moo that recently got national attention for paying their workers a living wage. They actually boasted quarterly profits consistently for the past few years, and they attribute it to low turnover and happy employees. Here's a link for "investment opportunities": http://www.moocluckmoo.com/#!investment-opportunities/c15lt Good luck!
Oh man, investing in Five Guys would be so awesome! One of my favorite fast food chains! I have never heard of Moo Cluck Moo, but I'm definitely going to have to look into it.
I think it's a great idea but there are some many food chains these days that you will have so many competitors fighting against your spot.
Since the news of the merger of Burger King and Tim Hortons was announced, I've been long on BK. I will most likely stay long for the long term. I always keep and eye on Chipotle and Yum! as well.
This seems like market where there are very slow gains involved, but as junebug stated Chipotle's early investors must be very happy right about now. Another benefit is the free flow of information in these markets. The fight for healthy food and the fitness surge in the USA and other countries recently would also have a detrimental impact on these types of stocks at the moment. It's very, very easy to gauge how customers feel about a certain fast-food franchise and how well they are responding to it on social media sites such as Facebook. I think Chipotle is very saturated right now with not much room for growth but that BK and Tim Hortons merger sounds very, very interesting.
Even if this niche is kind of saturated, fast food chains will always work, simply because.. we eat. You have to be careful which you choose though, the big companies are swallowing the little ones.
They say fast food restaurants are recession proof, mind you I think that's in reference to the bigger entities out there. For the most part, I think you'll get a reliable dividend payment for sometime to come and a reasonably stable stock, but I always have concerns about actual growth. Sure, if you can find something rapidly expanding or growing in popularity like Chipotle that would be fantastic, but I think everyone jumped on that band wagon already -- so what else stands out? Hrmm... takes a bit longer to figure out something from there.
I think investing in American fast food chains can be a good investment, especially if you invest in restaurants that sell lower-cost meals. Higher price ones cater to the middle and upper class. And because of their wealth they have many more choices where they can spend their money. So, their support can be fickle. I also thinking investing in a corporation that has many different restaurant chains catering to different socio-economic levels is good too.
I'd stay away from fast food stocks. Just my opinion but I just don't think the upside is there. Even McDonalds is struggling with weak sales right now. Chipotle seems to be on the rise, but I'd still be cautious as they may reach their ceiling soon. There are much better ways to invest your money rather than fast food joints.
Yes I think investing in a fast food chain can be a reliable use so just give it a try and see what happens. Newer chains would be excellent because they did not hit their peak due to being brand new. It's a competitive field but definitely not impossible and you can do anything.
