Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

Investors are scrambling to get their hands on next-generation meatless and agrifood technology companies, but the past couple of years have proven very lucrative for old-fashioned fast-food chains.

Why it matters: While legacy brands like Kraft Heinz and Campbell's are losing market share as consumers' tastes and shopping habits change, fast-food legacy names like McDonald's and KFC/Taco Bell owner YUM! Brands are seeing all-time high stock prices.

  • It's thanks in large part to investments in digital engagement and third-party delivery that have turbocharged sales and revenue in recent quarters.

By the numbers: Restaurant stocks have outperformed the S&P 500 by 13% over the last 12 months and valuations are up 16% year over year, analysts at Goldman Sachs said in a Monday note to clients.

  • Quick service and fast-casual restaurants — including traditional fast-food and pricier chains like Chipotle and Shake Shack — are doing even better, outperforming the S&P by 14% year-to-date and 27% over the last 12 months, Goldman analysts led by Katherine Fogertey said in the note.
  • McDonald's has seen its stock hit all-time highs 18 times in 2019, according to ETFTrends.com.
  • Even last year, when the S&P fell 6.2% overall, 5 companies from the fast-casual restaurant sector posted annual gains of 30% or more, led by Wingstop, which rose 65%.

The big picture: Even better for investors, "fundamentals are accelerating," Goldman analysts say, calling for 28% upside for Chipotle's stock — it touched a record high just last week — to $1,000 a share.

  • "Restaurants is a rare sector in the market that doesn’t yet face Amazon encroachment — digital is helping to drive growth and profits."

Between the lines: The fast-food industry's biggest tailwind is coming from a surprising source — the increased pay of low-wage workers.

  • After trailing higher-paid workers for years since the financial crisis, earnings for the bottom 25% of workers have been growing at a rate much faster than the national average, and weekly earnings for the bottom 10% of full-time workers have grown even faster, data shows.
  • Generally, rising wages would be seen as a negative for the industry, but coupled with stable gas prices, the increasing paychecks of low-wage workers means more money spent at fast-food and fast-casual restaurants.

Be smart: Goldman's research team estimates 70% of the industry's sales growth over the past 5 years can be explained by rising wages, lower gas prices and a boost from third-party apps like GrubHub and Uber Eats.

Go deeper: More than one-third of Americans report eating fast food every day

Go deeper

55 mins ago - Politics & Policy

Scoop: Joe Biden's COVID-19 bubble

Photo illustration: Aïda Amer/Axios. Photo: Joe Raedle/Getty Images

The incoming administration is planning extraordinary steps to protect its most prized commodity, Joe Biden, including requiring daily employee COVID tests and N95 masks at all times, according to new guidance sent to some incoming employees Tuesday.

Why it matters: The president-elect is 78 years old and therefore a high risk for the virus and its worst effects, despite having received the vaccine. While President Trump's team was nonchalant about COVID protocols — leading to several super-spreader episodes — the new rules will apply to all White House aides in "high proximity to principals."

Justice Department drops insider trading inquiry against Sen. Richard Burr

Sen. Richard Burr (R-N.C.) walking through the Senate Subway in the U.S. Capitol in December 2020. Photo: Stefani Reynolds/Getty Images

The Department of Justice told Sen. Richard Burr (R-N.C.) on Tuesday that it will not move forward with insider trading charges against him.

Why it matters: The decision, first reported by the New York Times, effectively ends the DOJ's investigation into the senator's stock sell-off that occurred after multiple lawmakers were briefed about the coronavirus' potential economic toll. Burr subsequently stepped down as chair of the Senate Intelligence Committee.

Netflix tops 200 million global subscribers

Illustration: Rebecca Zisser/Axios

Netflix said that it added another 8.5 million global subscribers last quarter, bringing its total number of paid subscribers globally to more than 200 million.

The big picture: Positive fourth-quarter results show Netflix's resiliency, despite increased competition and pandemic-related production headwinds.