Unhealthy Investing

Following in the footsteps of Chipotle and Burger King, Canada's favorite, Tim Hortons, is planning an IPO of its own. While it seems investors should be getting a bellyache from all of the food IPOs, the appetite for fast food chains has never been greater. Apart from commodities, it seems like the restaurant industry is becoming the new tech. Maybe in a few years, everyone will quit their financial sector jobs and begin the glamorous career of owning a donut shop. Until then, I personally think there is too much hype around all of these IPOs, especially for Tim Horton's and Burger King. Even though Tim Horton's has twice the penetration in Canada that McDonald's (MCD) has in the states, investors will still buy into the wild growth prospects pitched by every investment bank on the deal. In my opinion, the stock will trade high on emotion until the earnings will bring it back to reality, a few months later. If you want a great coffee and a donut, go to Tim Horton's, but if you want to make money, buy established good stocks like McDonald's.