🍟 Restaurant & fast-food stocks — still interesting, or past their peak?
In recent years, stocks of companies in the fast-food and casual dining space have behaved relatively steadily even during periods of economic uncertainty. Companies like McDonald’s$MCD, Yum! Brands $YUM(KFC, Taco Bell, Pizza Hut) or $CAKE Cheesecake Factory have managed to maintain revenue growth, improve operating efficiency, and in most cases increase dividends.
Do you think stocks like MCD, YUM or CAKE still have room to grow, or are they mostly in a defensive phase?
- How much do you think digitalization (mobile apps, self-service kiosks, AI in drive-thrus, etc.) will help these companies?
- Does it make more sense to hold these stocks for the stable dividend, or are they still a growth play?
- Which company in this sector do you think has the best risk/reward ratio for the next 2–3 years?
I'm following the company $CAVA. They have a pretty interesting business and, moreover, the shares have dropped a lot recently, so it could be an interesting opportunity.
I don't see much potential in it. I used to own a few shares of $MCD, but then I sold them.