Donald Trump’s Bitcoin Burger Purchase Sparks Surge in Fast-Food Stock Prices?

Key Takeaways

• Donald Trump’s recent payment of burgers with Bitcoin created a buzz in the digital-asset community.
• Also, the stocks of fast-food chains increased after the news.
• And Bitcoin benefitted from the event, nearing $66,000.

Donald Trump made waves in the digital asset community after he treated supporters to burgers and made purchases using Bitcoin (BTC). This move aimed to rally support among a demographic increasingly enthusiastic about digital assets.

Furthermore, the news also sent the fast-food-related stock prices higher in New York.

Trump Paid Burgers With Bitcoin

On Sept. 18, U.S. Republican presidential candidate Donald Trump made headlines with a bold move aimed at the digital-asset community. He treated supporters to burgers at PubKey, a Bitcoin-themed bar in New York, making his payment with Bitcoin.

As Trump arrived at the Greenwich Village establishment, he faced a mix of boos and jeers of “loser,” but the atmosphere quickly shifted to enthusiastic applause from a crowd of self-proclaimed Bitcoin advocates and Trump fans. With a grin, he asked, “Who wants a burger?” engaging with supporters eager for a taste of both his culinary offering and his political vision.

This latest gesture is part of Trump’s strategy to woo crypto enthusiasts for votes and backing his new venture, World Liberty Financial, which he and his sons are actively promoting. According to Drew Armstrong, co-founder of PubKey, Trump’s bill for the evening totaled $998.70, covering several dozen burgers.

Trump seamlessly completed his purchase using the Strike payments app built on the Lightning Network. The bar employed the Zaprite app to accept the Bitcoin, illustrating the potential of cryptocurrency as a payment option, despite its ongoing journey toward becoming a widely accepted medium of exchange. As an added perk, the Diet Cokes were complimentary.

“Bitcoin is really happening,” Trump remarked, highlighting the growing acceptance of cryptocurrency in mainstream culture. This visit to PubKey, a quick stop on his way to a rally in Long Island, underscores Trump’s commitment to engaging the crypto community, which has gained increasing traction in 2024, despite its troubled past filled with controversies.

How Patty-Related Stocks Reacted

After the news, burger-related stocks increased in New York. McDonald’s stock price was $292.03, on Sept. 18, currently at $303.65, reflecting an increase of approximately 4.0%. It’s unclear whether the fact that Trump used Bitcoin to pay for the burgers had a positive effect on the stock. McDonald’s hasn’t said if it accepts crypto payment—or will do—in its restaurants.

Recent earnings reports have shown mixed results, highlighting difficulties in revenue growth against rising costs, particularly in labor and ingredients. Analysts maintain a cautiously optimistic stance, emphasizing the importance of strategic investments in digital platforms and delivery services to bolster performance.

McDonald’s stock performance in 2024. l Credit: Yahoo! Finance

Restaurant Brands International (QSR) , which includes Tim Hortons, Burger King, and Popeyes, saw its stock price fall from $69.25, on Sept. 18, to $70.85 today, resulting in a rise of 2.3%.

This performance contrasts with the concerns over same-store sales and operational challenges within its brands. Analysts have adjusted their price targets downward, indicating a need for improved marketing and menu strategies.

Wendy’s and Shake Shack

During this period, Wendy’s Company also faced difficulties, with its stock price decreasing from $17.63 to $17.69, marking a slight increase of just 0.3%. The company has struggled with sales growth amid rising competition and shifting consumer preferences.

Recent earnings reports revealed a decrease in net income, driven by higher operational costs. To attract customers back to its stores, Wendy’s is focusing on menu innovation and digital improvements.

On a more positive note, Shake Shack has managed to buck the trend, with its stock price increasing from $103.86 to $106.13, an uptick of approximately 2.2%. Shake Shack’s resilience can be attributed to its strong second-quarter results, showcasing a yearly revenue growth of 16%.

The company actively addresses underperforming locations, demonstrating a commitment to profitability and operational efficiency. Positive analyst sentiment surrounds Shake Shack, with many maintaining “Buy” ratings amid a favorable outlook.

BTC Performance Analysis

Bitcoin’s price has increased significantly since the Trump news, rising from $60,244.17 to $65,786.86, a 9.2% gain. This upward movement indicates growing confidence among investors and heightened demand for the cryptocurrency.

Alongside this price surge , the market capitalization has also experienced substantial growth. It climbed from $1.19 trillion to $1.30 trillion, which aligns perfectly with the price increase after the Trump news.

Bitcoin price has increased since Trump used BTC to pay for burgers. l Credit: Giuseppe Fabio Ciccomascolo/TradingView

This positive trend suggests a broader acceptance of Bitcoin as a valuable asset in the financial environment. The concurrent rise in both price and market capitalization reflects not only an increase in market activity. But also a shift in investor sentiment, highlighting the cryptocurrency’s potential as a reliable investment option.

On the technical side, Bitcoin has completed a corrective pattern known as a W-X-Y structure, which typically follows a strong uptrend. The correction is believed to have ended with a symmetrical triangle, a technical chart pattern often indicating a period of indecision or accumulation before a breakout.