YCHART OF THE DAY: The New Economy – Cheap Tacos and Pricy Athletic Wear
No telling how much the customer bases overlap here (the mind shudders) but if you were long tacos, particularly those handed out at Chipotle (CMG) and at YUM! Brands’ (YUM) Taco Bell, and also long pricy athletic wear as sold by Lululemon (LULU) and Under Armour (UA), well, the past year would have been very kind to you, or at least to your wallet. Three big trends at work in these stocks: a booming consumer market in China, where YUM!’s KFC outlets outnumber any other fast food joint; vanity, both female and male, even when wearing workout clothes; and the notion – if not the truth; a Barbacoa burrito at Chipotle can easily hit 1,000 calories – of healthy eating. Watch out: the PEs range from 24 to 57.