5 Stocks That May Be Affected by FDA’s New Labeling Regulations
Uri Gruenbaum | Nov 26, 2014 08:50AM ET
On November 25th, the Food and Drug Administration announced new nutrition labeling laws that require all chain restaurants to “clearly and conspicuously “post calorie counts on menus. The law also applies to vending machines with more than 20 locations and is as far reaching as popcorn at movie theatres. Companies will have one year to comply with the new guidelines. Similar regulations have already been implanted in New York and California but will now be enforced throughout the country.
FDA Commissioner Margaret A. Hamburg, M.D. supported the law, reasoning that “Americans eat and drink about one-third of their calories away from home and people today expect clear information about the products they consume. Making calorie information available on chain restaurant menus and vending machines is an important step for public health that will help consumers make informed choices for themselves and their families.” Additionally, the new law is intended to empower consumers to make healthier eating choices while encouraging restaurants to provide healthier alternatives.
How will this new labeling law affect restaurant stocks in the service sector?
McDonald's (NYSE:MCD)
It is not so surprising that a Big Mac is 530 calories, but customers may be more shocked to realize that lattes, mochas, and frappes have as many as 670 calories (a large frappe mocha).
On November 25th, BWLD is Moderate Buy.
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