Eat Up Profits From These 4 Food Giants

By Thomas Hughes Food and beverage companies have been making headlines this earnings season. Earnings and profits among restaurants, beverage producers and snacks are increasing. You would think the strengthening U.S. recovery could have something to do with it. However, big names with global exposure are experiencing large scale growth overseas and sluggish sales here at home. Slowing GDP growth in China is having no effect on the results of food giants like O’Charley’s (CHUX), Coca Cola (KO), Pepsi (PEP) and Yum Brands (YUM). O’Charley’s jumped over 3% yesterday on the release of its fourth quarter and full year results. The fourth quarter saw a decline in net revenue due to some store closings but it was partially offset by a 1.1% increase in comparable store sales. O’Charley’s operates three chains of restaurants and saw growth among them all. The flagship chain, O’Charley’s, grew by .3%. Growth among franchisees more than compensated for a slight decline in company owned operations. The other two segments of operation, Ninety Nine Restaurants and Stoney River Legendary Steaks, grew by 3.9% and 7.2%, respectively. These two chains have been experiencing explosive growth and gaining popularity among traders and investors alike. The increased business is…