As Americans look to save money, more and more people are going out to eat at fast food restaurants. Three companies are good examples of fast food companies whose stocks have increased as of late.
McDonald’s (MCD) has been on a tear over the last year, rising from 72.14 to 90.45. It has had steady growth overall and sees no sign of stopping. The company, led by Jim Skinner, saw excellent second-quarter earnings. McDonald’s reported a 15% increase in profits. Much of its profits has been through beverages at the McCafe.
Although it’s stock stands at 51.51, YUM! Brands (YUM) range this year has been from 41.35 to 57.75, a significant increase and a sign of continued growth. Whether it’s KFC in eastern Africa or other Yum! brands in China and Japan, Yum! Brands is in it for the long haul, both in the USA and abroad. EVA Momentum created by Bennett Stewart of EVA Dimensions give YUM! an EVA growth rate of 1% placing it in the top 50 percentile of the Russel 3000. This makes YUM! a great long term buy.
Krispy Kreme Doughnuts
Krispy Kreme Doughnuts (KKD) may not be your choice of eateries, but it’s share is expected to post a report second-quarter profit of 6 cents a share by the time markets closed Thursday. This is double last year’s earnings of 3 cents a share. Shares are currently holding at 7.79.