“Eat One to Help Out” in Britain
The British government wants to reboot the nation’s economy after lockdown, starting with outdoor dining discounts and massive tax cuts on accommodation and attractions. The UK has become a harbor for super-cheap stocks. The FTSE 100 stock index is lagging.
The activist enticing investors back in again is economic medic Rishi Sunak, former Goldman Sachs executive and Chancellor of the Exchequer under Prime Minister Boris Johnson. His stimulus package is £30 billion-full of goodies, but food vouchers are the jewel.
The “Eat Out to Help Out” Tory Meal Deal reimburses diners for half the cost of their meals and bevies – non-alcoholic, of course, up to a certain price. It’s cool, but that slogan… ouch. How about “Stuff Your Face to Help to the Populace,” or, “Bottoms Up, Get That FTSE Up!” No?
It’s not restaurants, pubs, and cafes taking the brunt of this discount; it’s the government, which has prompted investors to check out stocks in this sector. Weatherspoon’s spiked on the news, a chain of taprooms with an awful instrument score on Invstr due to illiquidity, poor performance, and drunks. The community believes in a rare inflection, 95% bullish!
Marston’s, Mitchells & Butlers, The Restaurant Group, which owns Wagamama, McDonald’s, Whitbread, or even Uber’s Uber Eats division could all form a compelling investment basket, the performance of which will reveal whether Rishi Sunak has it in him to steer the FTSE 100 back up to the sunny uplands of 7.4K in time for Summer!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
