McDonald's, Fast Food Companies Serve Up Big Gains | ETF Trends

Fast food behemoth McDonald’s reached a new peak today, hitting nearly $209 a share intraday, and currently trading near its high.

The company recently began advertising and selling products off of its international menu, including the Stroopwafel McFlurry, the Grand McExtreme Bacon Burger, the Tomato Mozzarella Chicken Sandwich, and Cheesy Bacon Fries, which have been available at participating McDonald’s locations nationwide since June 5.

“These are fairly easy to do, fairly easy builds,” he said. “They might see it as … an easy marketing win without stretching the operations too much,” Sam Oches, editorial director of Food News Media at QSR magazine said. McDonald’s has been trying to streamline its menu to increase speed and efficiency, and to ease the burden on franchisees. The international items don’t require many new ingredients.

“We know our US customers are curious about McDonald’s international menu items,” Linda Van Gosen, McDonald’s vice president of menu innovation, said in a statement. She added that the company is “thrilled to leverage our global scale and offer popular flavors from around the world next month.”
With all the hype about the new products, and the success the fast food giant has had in 2019 alone, reaching all-time highs 18 times in 2019, two other fast-food stocks, Chipotle and Shake Shack, are now gaining some ground, offering up some significant competition, according to Craig Johnson, chief market technician at Piper Jaffray.

“If we take a look at the chart of Chipotle, this is a stock that has been in a pretty tight consolidation range, really since about March. It’s now breaking the topside of that consolidation range. And as an individual who looks at charts you’d look at a measured objective probably in the mid-$800s on that particular stock, ” Johnson said on CNBC’s “Trading Nation” on Friday.

“The second stock we’re ordering up is Shake Shack,” said Johnson. “This is a stock that is breaking out to new highs. You’ve just broken out, and you’re seeing confirmation with the relative strength trends also. So, from our perspective this is a stock that we think can move up appreciatively from here.”

For investors looking to use ETFs to take advantage of these recent fast food moves, the Restaurant ETF (MENU), and the Consumer Discretionary Select Sector SPDR ETF (XLY) contain many of these restaurants and more.

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