Read Why Fast Food Companies Will Be Immune To Inflation

Stephens analyst James Rutherford said in a note that fast food restaurant sales performed markedly better than casual diners in an inflationary scenario.
Given the current environment, with gas prices over $4 per gallon, up over 20% from the start of the year, the analyst recommends exposure to Wendy's Co WEN, Papa John's International Inc PZZA, and Chipotle Mexican Grill Inc CMG.
Quick service comps meaningfully outperformed full service in 2008 and 2009 because of the stronger value proposition of fast food compared to casual dining, the analyst opined.
With the developments in Ukraine exacerbating the inflation in gas prices, the analyst has opted for Wendy's, Papa John's, and Chipotle as stocks to consider for a "Consumer Downturn" scenario.
Rutherford believes there is a good growth path in front of Wendy's, Papa John's would likely fare well and Chipotle to be fairly insulated from a downturn in consumer spending.
Price Action: WEN shares are higher by 1.88% at $21.46, PZZA higher by 4.33% at $98.25, and CMG up by 7.15% at $1,407.47 on the last check Wednesday.