McDonald’s Corporation (MCD) Stocks and More Could Ruin Your Portfolio!

Page 2 of 2

The Healthier Options

This leaves us with 2 investment options: The Wendy’s Company (NASDAQ:WEN) and The Kroger Co. (NYSE:KR). Due to the increased priority of healthier foods, Wendy’s has launched low fat food fast food products like boiled potatoes and chili. Yes, most of its offerings include traditionally high calorie food items like sandwiches, but it all comes down what’s inside. Wendy’s products are not filled with cheese or fried potatoes, which brings down the calorie count.

But if we talk about eating healthy food items at home, Kroger tops the list. The grocery chain is not be a direct competitor of the other companies mentioned here, and it recently launched its “Simple Truth” and “Simple Truth Organic” brands. Its nutritional experts claim that these products are free from 101 artificial ingredients and preservatives, which are known to cause serious health problems over the longer run.

Company Yield 5 yr. EPS growth (expected)
Wendy’s 3.27% 15.61%
Kroger 2.3% 9.35%

Foolish Conclusion

In my opinion, health awareness will only increase with time. Investing in McDonalds or Chipotle may bring returns over the shorter time frame, but I believe that long term investors should look to capitalize on the global paradigm shift to healthier foods. I also believe investors should stay away from Yum! Brands. Analysts expect the EPS of both Wendy’s and Kroger to grow at a rapid pace, while they still offer a modest dividend yield. Both Wendy’s and Kroger get a Foolish Buy Rating.

The article These Stocks Could Ruin Your Portfolio! originally appeared on Fool.com and is written by Piyush Arora.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2