Let’s Get Takeout

Over the years some dining stocks have provided stellar long term returns. For example, McDonalds (in red) and Wendy’s have returned ~1500% and ~1400% respectively over the past 24 years as you can see in the chart below.  I do have to admit the last time I ate at either establishment I was in college and made a friend a bet I could eat a McDonalds regular hamburger in one bite.  Yah, I won the bet and have never returned. Not because the whole ordeal left a bad taste in my mouth (pun intended) but rather, I became much pickier about what I eat and unfortunately for me neither of these make the cut.

bay area financial advisor retirement planning specialist NAPFA CFP

When I look at its chart I wonder why it has done so well. Is it because of great management? Worldwide expansion? Or their apple pies? The chart below likely tells a significant part of the story.

Bay area financial advisor, retirement planner CFP

Does anyone think this trend will be changing any time soon? Me neither. As such it’s important to remember that finding those long term trends and riding them can be a very profitable investment strategy.