Which fast food restaurant is ripe for investment?

Automatic TRANSCRIPT

Out the golden arches up a fresh all-time high this week as that sought continues to grind higher. So if you wanna dig into fast food, where do you go and ironically, I asked Karen, this doesn't, but but if I did I probably go to McDonalds, I mean, it's it's not expensive relative some of the other names that obviously they've been executing. Really? Well, I mean, Chipotle lake kudos to them. They done a fantastic job. But I feel like they are on. I mean, they are on the high wire now any tiny miss and the expectations are very high could really send the stock lower. Even though they've really executed also done a fantastic job. I would just rather be in McDonalds if you like the risk reward is. More attractive. Well, kudos to piper Jaffray, Nicole. Regan said she's been the accent CMG for last couple of hundred dollars. Good for her. I mean, I think valuation is ridiculous and CMG. But I've thought that now for the last one hundred fifty dollars so our Wenjie wrong. But even McDonalds now is getting a little rich report on April thirtieth close to twenty two times forward earnings, which historically it's sort of the the loftier frothy or end for them. So they better crush on April thirtieth. But to your point earlier, it continues to be slow instead it to the upside. So maybe the trade McDonalds a stay with it up until earnings pull the Ripcord before they report. But also remember McDonald's is rolling out there tech platform. Right. I mean, if you look at what happened Domino's pizza was the first person to do it, then multiple different restaurant chains started to integrate tech. And that's what Madonna McDonald's is doing just now. And if there's, you know, the the other companies are a guide one might think that they're their sales in earnings are going to increase quite a bit because of this. So I would stick with the McDonald's, I think things are slowing is a dollar menu defensive. Yeah. We'd probably within the discretion. Space and within restaurants. Definitely McDonald's would operate more. Like a Staples company. I would just be a little bit. I I'd be cautious overall on those types of names because their cyclical, right? So I think that you know, the economy's doing worse you wanna avoid those restaurants. Typically, you know, the big debate right now is is the economy slowing arch is are people going to start losing their jobs. You've seen some bouncing around jobless claims if that happens, and I think you want to be way more cautious on those types of name your point on technology. I mean, they're McDonald's isn't going to be the first, you know, restaurant to roll out technology. There's a lot of other restaurants who remain nameless. But they they have terrible terrible apps that I won't use. So. I I think Starbucks is a good one. I think McDonald's has I think that but you don't go to. There is amazing.

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