2008 Feeds McDonald’s (NYSE: MCD) a Gain
Restaurateurs were hit with a double whammy of increased costs and dropping sales in 2008. But looking back at the carnage, there are a few bright spots. Although the restaurant sector dropped by 20%, it still beat the S&P’s 38% loss.
In fact, there is one restaurant that advanced in 2008.
Fast food icon McDonald’s (NYSE: MCD) closed up 4.5% for the year, with a sales increase of almost 8%. “Mickey D’s” also shares a distinction with Wal-Mart (NYSE: WMT) of being the only two stocks in the Dow Jones Industrial Average (.DJI) to close up for the year.
Value conscious consumers have driven sales higher at discount chains. And as costs drop, these fast food outlets have been cranking up their profit margins. While they may not be great for waistlines, apparently cheap eats are good the wallet.
Wendy’s (NYSE: WEN),Yum! Brands (NYSE: YUM) and Burger King (NYSE: BKC) have all risen by over 30% over the past few months.
Time will tell if that gives local gyms a bump in sales.
Companies mentioned in this article: MCD, WMT, WEN, YUM and BKC.
Related Investment U Articles:
- India’s Developing Fast Food Nation
- As McDonald’s Growth Continues… Customers and Shareholders Alike Are Saying, “I’m Loving It”
- Fast-Food Culture Grows in China
- Yum! Increases Exposure to China’s Expanding Market
- The Big Mac – Recession Proof
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