Schaeffer's Top Stock Picks for '25

5 Food Stocks Stepping Into the Limelight

Among the food and restaurant stocks with big news lately are Buffalo Wild Wings (NASDAQ:BWLD), Darden Restaurants, Inc. (NYSE:DRI), and PepsiCo, Inc. (NYSE:PEP)

Sep 18, 2015 at 10:14 AM
facebook X logo linkedin


Food and restaurant companies made headlines early this week -- some for same-store sales data, others for earnings results. The news stream hasn't relented, though. Here's a quick look at five food-related stocks coming off notable announcements:

Yesterday, Buffalo Wild Wings (NASDAQ:BWLD) ended its relationship with comedian Steve Rannazzisi due to his lies about 9/11, and pulled its ads featuring him. The stock, meanwhile, has been strong -- tacking on 10.1% year-to-date at $198.66, and approaching a record high of $204.70 from earlier this month. Nonetheless, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been betting bearishly, per BWLD's 10-day put/call volume ratio of 4.14 -- an annual high. A capitulation among these doubters could result in tailwinds.

Chipotle Mexican Grill, Inc.'s (NYSE:CMG) recent salmonella outbreak was caused by tomatoes, the Minnesota health department said. One group that's not sick is CMG shareholders, with the stock up over 6% year-to-date at $727.60 -- and not far from its early August all-time high of $758.61. Short-term traders remain put-skewed, though. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.32 ranks in the 84th annual percentile.

Darden Restaurants, Inc. (NYSE:DRI) brand Olive Garden once again decided to sell all-you-can-eat pasta passes on Thursday -- and the 2,000 units offered sold out in one second. Meanwhile, the company's stock has been cooking, up nearly 20% year-to-date at $70.28, and on the doorstep of its all-time peak of $75.60, notched in late July. Despite these strong technicals, DRI's 10-day ISE/CBOE/PHLX put/call volume ratio of 10.20 sits a mere 7 percentage points from an annual high. Should these bears begin to hit the exits, the shares could catch a lift.

PepsiCo, Inc. (NYSE:PEP) snack brand Doritos announced it will sell rainbow-colored chips for a limited time, in partnership with the It Gets Better Project. Shares of the food firm are off nearly 2% in 2015 at $92.73, and are struggling to stay atop their 20-month moving average, located at $92.35. Option traders are betting on more downside, too, per PEP's 10-day ISE/CBOE/PHLX put/call volume ratio of 2.03 -- higher than 98% of comparable readings taken in the past year.

Finally, Burger King -- owned by Restaurant Brands International Inc (NYSE:QSR) -- is teaming up with a number of chains to sell "peace day burgers" next Monday, Sept. 21. The initiative is meant to raise awareness of -- and money for -- the non-profit Peace One Day. On the charts, QSR has lost 4.4% year-to-date at $37.33, but option traders are rolling the dice on a breakout. Specifically, during the past 10 weeks, speculators have bought to open 12.45 calls for every put.
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));