Q: What would you say to switching part of a QSR holding into CMG, reasons for or against.
Thanks Matthew
Thanks Matthew
5i Research Answer:
CMG despite its big drop this year, is still more than 2X as expensive on valuation as QSR. QSR also offers a 4% and is outperforming. CMG we think is a good company, and its time will come, but after its Q2 and associated comments we would not expect much from it for several quarters. We would be less inclined to switch today.