SBUX - McDonald's wins out in Guggenheim's restaurant sector review; JACK YUM and WEN rated highly
sshaw75/iStock Unreleased via Getty Images Guggenheim says its macro work suggests spending trends should remain robust over the next 12 to 24 months even as government subsidies wane. The firm thinks restaurant industry sales will be driven by healthy consumer balance sheets that should chains top expectations. McDonald’s (MCD), Jack in the Box (JACK), Yum Brands (YUM) and Wendy’s (WEN) all earn Buy ratings from Guggenheim in its sweep of the sector. Chipotle (CMG), Starbucks (SBUX), Domino’s Pizza (DPZ) and Restaurant Brands International (QSR) are started with Neutral ratings. McDonald's is called the sector standout and named a Guggenheim Best Idea pick. Analyst Gregory Francfort: "MCD and YUM are benefiting in the U.S. from stronger-than-peer comps that, while unlikely to fully stick, demonstrate market share gains that are difficult to ignore. Eachs hould also benefit going forward from international recovery, still in early stages. JACK has sold off recently on
For further details see:
McDonald's wins out in Guggenheim's restaurant sector review; JACK, YUM and WEN rated highly