This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Selloff Swells Investor Appetite for Fast Food: StockTwits

NEW YORK (TheStreet) -- Fast food companies are providing a refuge for hungry investors in these choppy markets. McDonald's  (MCD - Get Report) and Wendy's  (WEN - Get Report) were among the few green spots on StockTwits.com's social heat map Thursday amidst a severe selloff that chopped 2% off of the S&P 500 , 1.6% off the Dow , and 3% off the tech-heavy Nasdaq .

McDonald's hit an all-time high as investors looked for established companies capable of attracting consumers no matter what the broader economic outlook.

@howardlindzon poor people need to eat. :) and families on the move fall into the fast food -- Neo (@Loyola80) Apr. 10 at 09:14 PM

@howardlindzon It really has to do with large amounts of money being moved into a safe stock. Same store sales are flat. Doesn't matter. -- Matt Smith (@Smithatude) Apr. 10 at 09:29 PM

Wendy's got an added boost from an analyst initiating coverage with a buy rating and an SEC filing showing that CEO Emil J. Brolick agreed to stay on through 2015. Brolick's contract was initially set to expire on Sept. 12.

Tigress Financial Partners Starts Wendy's ($WEN) at Buy http://stks.co/q0CBB -- SIAnalystWire (@AnalystWire) Apr. 10 at 11:03 AM

It's not surprising that investors now have an appetite for fast food companies. Bearish cashtaggers have long called for a great rotation from small caps and high growth names to tried-and-true companies seen as capable of withstanding broader economic weakness.

Fast food companies are considered the safest bet among the established companies. Cash-strapped consumers may not pay for a new computer with Microsoft  (MSFT) Windows software or an xBox, but they have to eat -- cheaply.

Microsoft, a traditional defensive play for tech investors, fell nearly 3% yesterday. However, Hewlett-Packard  (HPQ) edged higher, as did AT&T  (T).

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MCD $94.88 0.00%
WEN $10.40 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs