Their ‘asset-light’ model cuts your risks

Article Excerpt

We’ve long recommended that you hold some fast-food stocks such as the four market leaders below. Here are just some of compelling reasons behind our advice: For one, the well-known and widely admired brands of these companies make it easier for them to expand in foreign markets. Their brand power also helps to attract franchisees. Those partners assume responsibility for running the restaurants while the company collects steady franchising fees without the expense of operating the locations. Indeed, that “asset-light” business model has spurred strong gains over the past year for all shareholders of these four fast-food giants. As a result, these stocks may look pricey in relation to their future earnings. However, we think you’ll find that the above-average growth prospects of these companies are well worth their current share prices. MCDONALD’S CORP. $196 is a buy for investors. This original fast-food giant (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 753.1 million; Market cap: $147.6 billion; Price-to-sales ratio: 7.1; Dividend…