Strategist Recommends Buying Costco and Avoiding McDonald's Due to Weak Consumer Spending

Reported about 1 year ago

In the latest episode of 'Good Buy or Goodbye,' Tematica Research chief investment officer Chris Versace suggests investing in Costco as consumers cut back on dining out, noting the company's strong position with over half of its product revenue from fresh food. Versace also highlights Costco's value proposition and stable membership fees as positive factors. In contrast, he is bearish on McDonald's, pointing out that consumers are eating out less due to inflation and that the fast-food chain may struggle to increase margins over time amid wage pressures. Versace sold his position in McDonald's earlier in the year due to concerns about minimum wage hikes in California.

Source: YAHOO

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