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The 4 Top Reasons to Buy These 4 Fast Food Staple Stocks on a Dip

NEW YORK ( TheStreet) -- Walk into any fast food restaurant around the world, and its almost a certainty there will be a product of Coca-Cola (KO - Get Report), PepsiCo (PEP - Get Report), Yum! Brands (YUM - Get Report) or McDonald's (MCD - Get Report) on the menu.

That is the first of four reasons investors should take advantage of any dips in the share prices to accumulate positions for long term gains of these blue chip consumer stocks.

Items from Coca-Cola, PepsiCo, McDonald's, and Yum! Brands (KFC, Taco Bell, Pizza Hut, etc...) are officially served in every country but two, Cuba and North Korea. The "Black Market" often times provides the products in those nations, however. It is likely that North Korea and Cuba will someday open up for these and other goods (let's hope).

Consumer trends in spending also favor fast food restaurants.

According to a report from McKinsey & Co., "Winning the $30 Trillion Decathlon," most of the growth in consumer spending will be in emerging markets such as China and India. When consumers generate more disposable income, eating out tops the list of the new ways to spend the additional money. Dining out has increased by one-third in the U.S. to where almost half the meals are prepared away from home. Fast food restaurants are ideally placed to profit from this unfolding trend across the planet.

Growth is projected for each of these stocks in a bullish trajectory.

Coca-Cola, PepsiCo, Yum! Brands, and McDonald's are simply too big to have monster growth anymore. That does not mean, however, the days of solid growth are over. As the chart below shows, earnings-per-share growth for the next five years is in a positive trajectory for each, which is always bullish.

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MCD $128.06 1.20%
KO $44.96 0.36%
PEP $103.60 0.62%
YUM $80.46 1.10%
SPY $206.45 0.06%


Chart of I:DJI
DOW 17,834.52 -56.64 -0.32%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

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