Investors looking for exposure to the fast food and restaurant space may want to consider Domino's Pizza, Inc. DPZ, McDonald's Corp MCD, and Starbucks Corporation SBUX, Goldman Sachs analysts said in a note that was subject of a recent CNBC "Trading Nation" segment.
'Can't Go Wrong': Commenting on Goldman's call on CNBC, Boris Schlossberg, managing director of FX strategy at BK Asset Management, said the three names have truly mastered the "fast-food experience." The companies also boast large economies of scale that few others can match.
Domino's operates from a position of logistical power, McDonald's can work quickly to streamline ordering and test new items like a meatless burger, and Starbucks leverages its app that generates incremental revenue in the millions of dollars.
"You really can't go wrong with Domino's, Mickey D's and Starbucks," he said.
Related Link: Morgan Stanley's Restaurant Pair Trade: Upgrade Darden, Downgrade Restaurant Brands
Ongoing Momentum: Domino's, McDonald's, and Starbucks should continue benefiting from recent momentum and "reward investors very well in the near future," TradingAnalysis.com Founder Todd Gordon said on "Trading Nation. The fast-food and restaurant chains can also profit from an easier competitive environment after more than 100,000 independent restaurants that closed last year.
"As much as I hate to say it, the world is changing," he said. "Food services that are embracing this touchless payment on mobile apps, the loyalty programs, digital marketing, social media channels, those are the ones who will succeed."
(Photo: Big Mac, McDonald's)
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