Big Macs, Burgernomics and a Tech Revolution
The year was 1974.
A tumultuous time marked by out-of-control inflation (11%), the resignation of President Richard Nixon and the mandate of a national highway speed limit of 55 mph (repealed in 1995).
It wasn’t an especially fun year for Americans.
But within 1974’s chaos, a catchy McDonald’s jingle stole the nation’s heart and became one of the most successful ad campaigns of all time…
“Two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame-seed bun.”
The commercial marked the official beginning of America’s fast-food obsession, which quickly exploded into an industry worth over $3 trillion.
As McDonald’s now-famous ad saw heavy rotation 46 years ago, a Big Mac sold for 65 cents and a gallon of gasoline sold for 53 cents… placing the Mac-to-gasoline ratio at 1.23.
Standing at 1.78 today, the inflated Mac-to-gas ratio implies something noteworthy…
Food carries a higher premium than gasoline in America 2020.
But here’s the irony…
America’s fast-food obsession is long over… McDonald’s fun little jingle has lost virtually all of its relevance… and I’m replacing the Mac-to-gas ratio with something that better reflects the FoodTech revolution spreading like wildfire across the country…
Introducing the “Impossible-to-gas” ratio.
The ratio uses the price of Burger King’s Impossible Whopper as the numerator instead of the Big Mac and tells us a lot about the radical shift in food consumption and demand patterns.
Welcome to the FoodTech Revolution
Let’s start with the basics…
The Impossible Whopper is a copycat version of Burger King’s famous Whopper sandwich, with the only difference being Impossible Foods’ quarter-pound, plant-based burger patty.
As the picture on Burger King’s website shows, the Impossible Whopper looks exactly the same as the original Whopper… and includes all the traditional fixings — lettuce, tomato, mayonnaise, ketchup, pickles, onions and a sesame-seed bun.
The burger tastes nearly the same, too, despite its patty consisting of a unique ingredient called soy leghemoglobin… and a few other proprietary ingredients that make Impossible Burgers so meatlike.
Even the burger’s calorie load is comparable with the original Whopper.
At a price point of $5.59, the Impossible-to-gas ratio clocks in at 2.23.
Yes, the ratio is 25% higher than the Mac-to-gas ratio.
But new data says that consumers are willing to pay up for a healthy meal, proving that the food industry has reached a key inflection point…
According to Wired, “Sales of plant-based meat have jumped more than 200% and have outpaced meat sales since the start of the COVID-19 pandemic. As sales projections ramp up, costs have decreased… Meanwhile, the pandemic has shown industrial farming and slaughter to be a fragile value chain prone to disruption and dangerous for workers, and has convinced some that it’s a bad investment.”
I’m devoting the next entire issue of my flagship newsletter, Future Wealth, to the booming FoodTech industry.
Although Impossible Foods is rumored to be preparing to go public, the company’s meat-free burger represents only a fraction of this breakout niche of the tech sector.
Investment opportunities abound.
I’ll cover the hottest FoodTech stocks in the next issue of Future Wealth.
For more information about Future Wealth, including the next company I believe will join the trillion-dollar club, click the link below.
Onward and upward,