In 1950, the United States was on the cusp of a boom that would produce the largest middle class in history. It was also the beginning of a surge in the U.S. economy that would make it one of the richest countries ever.
China today is on the verge of something similar.
In 2000, just four percent of China’s urban population was considered middle class. By 2022, that figure will be a whopping 76 percent. That’s over 550 million middle-class people in China. To put this in perspective, it’s middle class will be 1.7 times the entire population of the U.S.
A growing middle class means Chinese consumer spending will surge too. It’s set to increase 55 percent between 2015 and 2020.
Among other things, the middle class is set to spend its money on healthcare, education and fast food.
The growth in China’s restaurant industry
Fast food is convenient, quick and it has a variety of options. It’s also cheaper than eating at full-scale restaurants. That’s why the Chinese middle class is spending its new money on fast food.
According to IBIS Word, the Chinese fast food restaurant industry was expected to generate US$135.6 billion in 2016. That’s up 8.3 percent from 2015. And over the five years through 2016, revenue has grown at an annualized rate of 10 percent. That number is expected to grow as the middle class does.
Early investors will profit
This is a massive opportunity for investors. Many Chinese fast food restaurants are about to see profits soar… along with their share prices. Investors who get in at the beginning could see big gains.
Remember, the Chinese middle-class boom is similar to the one that started in the U.S. in 1950. Investing in fast food during the U.S. boom made investors a lot of money.
Investing US$1,000 in McDonald’s stock back in 1965 would be worth $4.1 million now.
Investing US$1,000 in Chipotle stock at its IPO in 2006 would be worth $10,710 today (a 971% return).
If the Chinese fast food industry isn’t on your investor radar yet, it should be. And Stansberry Churchouse has found one of the best ways to profit.
One company is a leader in the fast food industry in China. It’s opening more than 500 new restaurants a year across the country. And by 2020, it could have more than 20,000 restaurants in China.
Investors could see at least a double-digit gain by the end of the year… and potentially much more over the coming years.
Better yet, it’s easy to buy this stock. It trades on the U.S. Nasdaq exchange. That means you’ll likely be able to buy it from the brokerage account you already have, with just a few clicks.
If you want to find out more about profiting from the coming Chinese consumer boom – including how to learn the name of this stock click here.