The introduction of the breakfast menu has cranked up the competition in the fast food business. Recent trends have shown that customers place great value on convenient breakfast, one that would require very little effort to get up and clean up afterwards. Fast food chains were quick to pounce, offering a wide range of offers. For some of them, sales generated by breakfast menus have come to account for a quarter of their overall revenue, thus proving to be an instant hit. Let’s have a look at some of the most popular fast food stocks and find out which of them hedge funds like best.
We determine hedge fund sentiment by analyzing the equity portfolios of some of the best-performing hedge funds and institutional investors. Through extensive research, we have determined that the due diligence that these investors employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also shown that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (read more details here).
One of the most popular stocks among the hedge funds we follow, McDonald’s Corporation (NYSE:MCD) was held by 84 funds from the Insider Monkey database at the end of the fourth quarter, up from 75 a quarter earlier. Doug Silverman And Alexander Klabin‘s Senator Investment Group is bullish on McDonald’s Corporation (NYSE:MCD), having initiated a position during the quarter and amassing 1.5 million shares valued at $177 million according to its latest 13F filing. Rob Citrone’s Discovery Capital Management is also optimistic about the prospects of the company, having boosted its stake by 6% to 1.78 million shares worth $210 million at the end of December. McDonald’s Corporation (NYSE:MCD) has recently stepped up efforts to become more mobile-friendly, as it is preparing for the launch of an app that would take the company’s loyalty program to a whole new level. In addition, with the introduction of the all-day breakfast proving to be a great success, McDonald’s is now looking to expand its breakfast menu in the hope of a bump in sales.