Investors who are looking for stock picks amid an uncertain economic background could find opportunities within the fast-food sector as consumers become more cautious on spending, one analyst says.
 
Speaking with BNN Bloomberg’s Amber Kanwar on Friday, Nick Setyan, equity analyst at Wedbush Securities Inc., said the second half of 2023 is likely see to a drop in consumer demand, making several fast-food joints more attractive in terms of discretionary spending.
 
He is bullish on food companies within this space who have strong management teams and remain at compelling evaluation levels.
 
“We’re starting to see some signs that there is some trade down going on, there is some caution in the April data and the April commentary. So I think it’s here already,” he said. 
 
Setyan recommend Wendys Co. (WEN), Darden Restaurants Inc. (DRI), and Chipotle Mexican Grill Inc. (CMG) as his top three picks within the fast-food industry. 
 
He, his family, his firm and his investment banking clients do not own any of the stocks mentioned above. 

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