Fast food chains have had an interesting year with the return of McDonald's dollar menu and America's desire to eat healthier. So what does it mean for the industry going into 2018? Jeff Tomasulo, CEO at Vespula Capital, and Chris Versace, Chief Investment Officer at Tematica Research, join Cheddar to discuss which chain will come out on top. McDonald's stopped using the value meal strategy in 2013, and it has cost them $2.9 billion in sales, according to Tomasulo. He says the fast food restaurant game is all about volume and getting people in the door. Now that McDonald's brought it back, it's bringing in more foot traffic but also forcing other chains to discount their menus. Wendy's beefed up its "4 for $4" bundles in response to McDonald's dollar menu revival. Other than price, these fast food chains also need to worry about food safety, something Chipotle has had a rough time with. Versace says if the company can fix the safety issue and get its cost structure in line, the stock could turn for the better in a very quick manner. He says company turnarounds tend to take time and unfortuneatly that shakes investor confidence.

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Small grocers and convenience stores feel an impact as customers go without SNAP benefits
Some small grocery stores and neighborhood convenience stores are eager for the U.S. government shutdown to end and for their customers to start receiving federal food aid again. Late last month, the Trump administration froze funding for the SNAP benefits that about 42 million Americans use to buy groceries. The U.S. Department of Agriculture says about 74% of the assistance was spent last year at superstores like Walmart and supermarkets like Kroger. Around 14% went to smaller stores that are more accessible to SNAP beneficiaries. A former director of the United Nations World Food Program says SNAP is not only a social safety net for families but a local economic engine that supports neighborhood businesses.
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