If you’ve been keeping up with the news, then you may have noticed that fried chicken is sweeping the nation.
I know, it sounds ridiculous. But I swear I’m not kidding here.
But nothing compares to what Popeyes Louisiana Kitchen just did. The restaurant’s newest product is causing holdups and court cases in a frenzy that can only be compared to the boy-band craze of the ’90s.
As a result, the obsession has become an unrivaled moneymaker. And I’m not just talking about the fried chicken producers.
You may have missed out on trying Popeyes’ new creation, but there’s still time to get in on the profit opportunity.
This is exactly how you can cash in on the “fried chicken frenzy” before it’s too late…
On August 12, 2019, Popeyes premiered their first-ever chicken sandwich – a buttermilk-battered filet with pickles and mayonnaise on a brioche bun.
15 days later, they ran out.
The sandwich’s popularity didn’t truly take off, however, until a week after the new product hit stores. Instigating the craze was a certain social media site that’s become a household name in the market the past few weeks – Twitter Inc. (NYSE: TWTR).
You see, Popeyes’ new sandwich spurred some competition in the fast food industry, causing the number one chicken chain in the country to fight back via social media.
On August 19, Chick-fil-A tweeted, reminding followers of their own beloved chicken sandwich:
(Taken from Twitter.com)
Then, Popeyes retaliated…
(Taken from Twitter.com)
And so began the sandwich war of 2019.
Don’t worry, I haven’t lost my mind. I’m aware of how incredibly absurd this all sounds. But bear with me, because there’s a serious profit opportunity hidden in all the madness…
Popeyes gained 25,000 new followers after that tweet. Store traffic doubled. Lines started wrapping around restaurants. The chicken chain sold about 1,000 sandwiches in each store per week, according to an analyst at KeyBanc Capital Markets. The sandwich took up about 30% of Popeyes’ sales. Employees had to work 60-hour weeks to keep up with the demand.
I wasn’t kidding about the holdups and court cases, either. When a group of five people found that their local Popeyes had sold out of the sandwich, they held the restaurant cashier at gunpoint. One man even sued the chicken chain for running out of stock.
Everyone was dying to taste the legendary sandwich – but now, no one can.
On August 27, Popeyes took to social media yet again, this time tweeting that they would run out of the sandwich by the end of the week. The restaurant chain had bought inventory that was supposed to last them until the end of September, but ran out before August was even over.
When a product craze is this big, there’s a profit to be made somewhere. In this case, it’s in Popeyes’ parent company, Restaurant Brands International Inc. (NYSE: QSR).
QSR owns popular restaurant chains Tim Horton’s and Burger King as well, and the stock is up 28.24% year-to-date. The parent company’s earnings report for Q3 is due on October 23, 2019, and Popeyes’ chicken-sandwich-spurred sales jump is sure to bump up the numbers.
But a fad is called a fad for a reason – it doesn’t tend to last. People aren’t walking around with perms anymore. High school boys aren’t wearing varsity jackets. NSYNC broke up.
So, buying and holding QSR stock isn’t your best bet here. Instead, you want to use options to capitalize on a short-term profit opportunity.
When you have a short-term bullish outlook on a stock, like QSR, you can buy a call option.
Take Gilead Sciences Inc. (NASDAQ: GILD), for example. GILD may be a biotechnology company, not a fast-food owner, but that’s not important. Our outlook on the stock back in June was similar to our outlook on QSR now.
On June 10, 2019, GILD was trading around $65.40. So, we bought a call option for $2.00, or $200 for control over 100 shares. On June 18, the stock had risen to trade at $67.65 – and our call option had risen to $4.00. So, we sold our GILD call for double what we bought it for, taking home a 100% gain in just eight days.
If you’re looking for a fast and lucrative profit, then options are always your best course of action.
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See what we’re up to right here.
