And yet, while many fast food chains have posted consistently solid numbers year in and year out, it looks as though one particular restaurant missed a step recently: Wendy’s.

This quarter, Wendy’s same-store sales growth numbers didn’t meet the expectations that Wall Street had predicted. This has left people blaming the state of the country’s inflation, which is currently at decades-high levels.

It seems that with the way inflation is today, people simply aren’t buying burgers and fries the way they used to. Houses that have lower incomes are avoiding discretionary purchases as much as they possibly can, and fast food chains such as Wendy’s are feeling the brunt of it.

Given the fact that Wendy’s was already in some steep competition with fellow fast food companies such as Burger King, KFC, and McDonald’s, this recent slip doesn’t look good for them.

However, it’s not as though McDonald’s hasn’t been on shaky ground either. A handful of fast food chains have felt the growing pains of a changing inflation rate, leading many to consider lowering their prices.

The post Wendy’s Quarterly Sales Come Up Short appeared first on theprimarymarket.com.

As stated plainly by the company’s late former CFO Harry J. Sonneborn, “We are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.”

This concept was the mantra of McDonald’s executives ever since it was taken over by Ray Croc from the McDonald brothers in the 1960s. He and partner Sonneborn ran the company so successfully that it changed the landscape of the food industry, essentially inventing fast food as we know it today.

Even today, McDonald’s profits are impressive and continue to rise. The first quarter of 2022 showed a gross profit of just over $3 billion, which was also a 14.31% increase from the previous year.

Some investors have hesitated from putting their money in the corporation due to a valuation that they worry is too high. However, considering the company has a price-to-free-cash-flow ratio of about 27, as well as a price-to-earnings ratio of 25—not to mention the fact that their revenue is still growing—we think it remains to be a great bet.

The post McDonald’s May Still Be a Real Estate Stock Juggernaut appeared first on theprimarymarket.com.

And yet, while many fast food chains have posted consistently solid numbers year in and year out, it looks as though one particular restaurant missed a step recently: Wendy’s.

This quarter, Wendy’s same-store sales growth numbers didn’t meet the expectations that Wall Street had predicted. This has left people blaming the state of the country’s inflation, which is currently at decades-high levels.

It seems that with the way inflation is today, people simply aren’t buying burgers and fries the way they used to. Houses that have lower incomes are avoiding discretionary purchases as much as they possibly can, and fast food chains such as Wendy’s are feeling the brunt of it.

Given the fact that Wendy’s was already in some steep competition with fellow fast food companies such as Burger King, KFC, and McDonald’s, this recent slip doesn’t look good for them.

However, it’s not as though McDonald’s hasn’t been on shaky ground either. A handful of fast food chains have felt the growing pains of a changing inflation rate, leading many to consider lowering their prices.

The post Wendy’s Quarterly Sales Come Up Short appeared first on theprimarymarket.com.

As stated plainly by the company’s late former CFO Harry J. Sonneborn, “We are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.”

This concept was the mantra of McDonald’s executives ever since it was taken over by Ray Croc from the McDonald brothers in the 1960s. He and partner Sonneborn ran the company so successfully that it changed the landscape of the food industry, essentially inventing fast food as we know it today.

Even today, McDonald’s profits are impressive and continue to rise. The first quarter of 2022 showed a gross profit of just over $3 billion, which was also a 14.31% increase from the previous year.

Some investors have hesitated from putting their money in the corporation due to a valuation that they worry is too high. However, considering the company has a price-to-free-cash-flow ratio of about 27, as well as a price-to-earnings ratio of 25—not to mention the fact that their revenue is still growing—we think it remains to be a great bet.

The post McDonald’s May Still Be a Real Estate Stock Juggernaut appeared first on theprimarymarket.com.