New York, NY (PRWEB) October 12, 2012
In a recent Investment Contrarians article, editor and financial expert George Leong, citing data from the U.S. Department of Labor, reports that a staggering 30% of the 96,000 new jobs generated in August were driven by the food-services sector. Leong also notes that the Bloomberg U.S. Quick Service Restaurant Index, which includes YUM! Brands and McDonalds, is up over 22% for the year to October 3. According to Leong’s stock analysis, the investment opportunity for food-related stocks is excellent, especially with the fast-food stocks.
“If you are looking for U.S. restaurant stocks that have a dominant position, not only domestically, but also in China—the fastest growing market for fast foods—there are three major best stocks that are deserving of a look and addition to your portfolio,” says Leong.
As Leong outlines, the three stocks are: McDonalds, with its over 33,000 restaurants, and a further 2,000 planned for China by 2013; YUM!, the operator of such well-known fast-food outlets as Taco Bell, Kentucky Fried Chicken (KFC), and Pizza Hut; and Starbucks, with over 750 stores in China, and plans for another 1,500 by 2015.
“McDonalds has been a top performer in the restaurant sector over the past decade after making a dramatic shift in its menu to include healthy meals and to broaden its target market,” explains the Investment Contrarians expert.
Leong points out that the company’s strategy has worked, vaulting McDonalds to the top of the fast-food chain above competitors Burger King and The Wendys Company.
“According to the company’s web site, YUM! considers China to be the greatest restaurant opportunity of the 21st century,” notes Leong. “At present, about 40% of the company’s profits are generated in that country.”
Finally, in spite of its later start, Starbucks is reporting strong business, says Leong. According to his stock analysis, Starbucks has excellent potential, based on the possibility of the Chinese shifting their drinking preference from tea to coffee.
To see the full article, and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.