McDonald’s Corporation (MCD), Yum! Brands, Inc. (YUM): Hedge Your Risk With Food

Analysts on a consensus basis anticipate the company to grow earnings by 11.69% on average over the next 5 years. The company also pays its investors a 1.98% dividend yield. One potential upside catalyst involves exponential growth from its direct involvement in China.

The 24 hour diner

I am an enormous fan of Denny’s Corporation (NASDAQ:DENN). The concept of being able to eat in a family restaurant 24 hours a day is both brilliant and lucrative. The company has a $553 million market capitalization, meaning that the company is small enough to grow, but is sturdy enough to stand on its own. Analysts on a consensus basis anticipate the company to grow earnings by 19% on average over the next 5 years. The company also recently started opening franchises in markets outside of the United States. Denny’s Corporation (NASDAQ:DENN) doesn’t pay its shareholders a dividend, but it at least makes up for it with growth.

Conclusion

Investors who are afraid of losing capital in a volatile market environment should consider investing in these three restaurants. The company’s are financially stable, can build upon a working business model, and have a predictable pattern of growth. McDonald’s Corporation (NYSE:MCD) and Yum! Brands, Inc. (NYSE:YUM) also comes with the added benefit of dividends, which can either be used as income or reinvested for compounding returns.

The article Hedge Your Risk With Food originally appeared on Fool.com and is written by Alexander Cho.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of McDonald’s. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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