Inflation and Defensive Performance in Fast Food Stocks

Junyao Li

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Yu, Huaibing  

Abstract:

In recent years, inflation has increased significantly in the United States and has affected both consumers and financial markets. When prices rise, people often change their spending behavior and look for more affordable food options. Fast food restaurants may benefit from this change because they provide relatively low-cost meals compared to other dining choices. This study examines whether fast food company stocks perform more steadily during periods of high inflation.This research uses publicly available secondary data instead of surveys. Inflation data are obtained from the Federal Reserve Economic Data (FRED) database using the Consumer Price Index (CPI). Stock price data for major fast food companies, including McDonald’s and Starbucks, are collected from Yahoo Finance. The study compares inflation trends with stock price movements over several years.The analysis mainly uses charts and trend comparisons to observe how fast food stocks behave during different inflation periods. The goal is to identify whether these companies show more stable performance when inflation increases. The findings may help investors better understand how economic conditions influence industry performance and whether fast food stocks can be considered relatively defensive investments during uncertain economic environments.