From Amazon to McDonald's, strong earnings show U.S. consumer resilience

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In a strong quarter for earnings, the big consumer stocks have shone even brighter, thanks to results from McDonald's, Chipotle Mexican Grill and others that...

- In a strong quarter for earnings, the big consumer stocks have shone even brighter, thanks to results from McDonald's, Chipotle Mexican Grill and others that rank among the biggest surprises of the reporting cycle so far.

Discretionary stocks have performed strongly in 2023, proving their resilience at a time when the expectations of a U.S. economic slowdown run high. A 4.9% rise in U.S. gross domestic product in the third quarter further highlights the health of the consumer. McDonald's benefited from falling wholesale costs, as its per-share earnings came in at an adjusted $3.19, compared with consensus estimates for $3 a share. The company said falling costs of commodities like vegetables and proteins helped margins.

"I don't think consumer spending drove these beats. I think it was more pricing and a resilient consumer, ones that were able to take this rate at a time when discretionary income is under pressure," Wedbush analyst Gerald Pascarelli said. TSX dividend stocks such as Brookfield Asset Management are well positioned to deliver steady gains to shareholders. The post 2 Top TSX Cash Cows You Should Be Buying Right Now appeared first on The Motley Fool Canada.I Paid for Everything With Cash for Months: Here’s What I Learned

 

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