For example, as part of its Spring menu, Burger King features both vegetarian and turkey burgers — a rarity among fast food chains.
Burger King Worldwide Inc (NYSE:BKW) beat analyst expectations when it reported earnings Friday, and shares moved higher on the news. Perhaps a remodeled Burger King can retake its spot as the number two burger chain.
Panera Bread’s growth may be slowing
After being a great growth story in recent years, Panera Bread Co (NASDAQ:PNRA) shares dropped about 5% last week. That move was largely predicated on a poor earnings report that saw the company miss analyst expectations and give relatively weak guidance.
The company blamed winter storms for its results, noting on the earnings call that it was “very difficult to hold good operating disciplines when sales patterns swing wildly due to the winter storms.”
One of the biggest questions surrounding Panera’s future is its management. Co-CEO William Moreton is planning to step down, giving full control of the company back to founder Ron Shaich. On the recent earnings call, Panera Bread Co (NASDAQ:PNRA) was questioned a number of times about the management change, and it did its best to argue that the strength of the overall team was industry-leading.
Overall, Panera shares are up almost 300% in the last five years, and the company wants to keep growing. Management believes the best use of its cash is to continue to open new stores.
Chipotle has become a popular stock to hate
Like Panera, Chipotle has been a big grower in recent years. But that record growth has attracted a fair amount of critics.
David Einhorn said he was betting against Chipotle Mexican Grill, Inc. (NYSE:CMG) last October, arguing that Taco Bell’s push into higher-end Mexican food would crush the company. Likewise, Jeff Gundlach echoed Einhorn’s sentiments recently, stating that the concept of a gourmet burrito was an “oxymoron.”
Despite the criticism, Chipotle has been a solid performer in 2013, rallying over 20% year-to-date. The fast food chain posted solid earnings earlier in April, which pushed shares back above $360.
For its part, Chipotle Mexican Grill, Inc. (NYSE:CMG)’s management believes that it isn’t just its burritos that make it successful. Rather, Chipotle believes it has stumbled onto a new model for fast food entirely, one that can be applied to other types of cuisine. The company is currently testing an Asian spin-off in select markets.
Investing in fast food
Most investors probably don’t think of fast food when they think of exciting stocks. Yet, the fast food industry as a whole is currently undergoing revolutionary shifts. That kind of shake up can serve as a launchpad for opportunity — both from the long and the short side. When looking for trades then, investors ought to consider fast food.
The article The 5 Most Interesting Fast Food Stocks originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.
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