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If you haven’t heard of cryptocurrencies like Bitcoin or the wildly popular stock trading and investment app <a href="https://robinhood.com/us/en/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">Robinhood</a>, then you’ve probably been living under a rock. Commission-free investing, cryptocurrency investing and retail trading surged during the COVID-19 pandemic, with individual traders now taking up around <a href="https://www.reuters.com/business/meme-stock-prices-may-not-properly-reflect-demand-nyse-president-2021-06-16/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">35%</a> of market volume, up from 20% pre-pandemic.<figure class="image image-style-align-right"><img src="https://lh3.googleusercontent.com/SBoipntaZS1ZxIQ6smc5MLDdJBlYfqGWXt55FjRQ8x_guzN6gmOGt2LP1qkdFEVgcLKWOE0qoQVdoWnuCIclHrVCf6iShN1VFd5Cw1dVSfLIEd2BXnmXAm1B_vVY7qFsBZIhPihU"><figcaption>Image credit: <a href="https://www.news18.com/news/buzz/elon-musks-tweet-on-dogecoin-leads-to-surge-in-memes-and-all-time-high-market-value-of-cryptocurrency-3403547.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">News 18</a></figcaption></figure>Companies like video game retailer GameStop Corp and theater chain operator AMC Entertainment — whose fans jokingly refer to themselves as “apes” — have performed exceptionally well this year, prompting <a href="https://www.nbcnews.com/business/business-news/amc-trading-frenzy-triggers-trading-halts-stock-surges-more-80-n1269379?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">trading halts</a> and sparking <a href="https://www.nytimes.com/2021/03/17/business/gamestop-hearing.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">Congressional hearings</a>. Even tech billionaire Elon Musk <a href="https://www.cnbc.com/2021/05/07/elon-musk-cryptocurrency-is-promising-but-invest-with-caution.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">became a part of the surge of interest</a> in cryptocurrency, with Musk’s tongue-in-cheek support of Dogecoin on Twitter awarding him the title of “Dogefather.”But do franchise kings like <a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/acquiring-franchising.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">McDonald’s</a> and Yum! Brands’ <a href="https://www.kfc.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">KFC</a> have the same “get rich” possibilities for investors? 1851 Franchise spoke with popular YouTube streamer <a href="https://www.youtube.com/c/MattKohrs/featured?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">Matt Kohrs</a> to determine whether or not franchises are a lucrative stock investment.<h4>Matt Kohrs’ Advice: Weak Franchises = Weak Stock</h4>With nearly 340,000 YouTube subscribers, Kohrs has gained a devoted following with his stock analyses and predictions. He made his first trade in high school (despite his parents’ warnings) and has now been investing for nearly a decade. And as a former franchisee with <a href="https://www.squaretrade.com/go/locations/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">iCracked</a>, a phone repair company, he knows a thing or two about the franchising industry.According to Kohrs, tech, electric vehicle and restaurant industries are experiencing some of the best-performing stocks right now. But when it comes to specific franchise companies, it all depends on the strength of the business.“Just like any other stock, some are strong and others aren't, so it depends on the robustness of the company,” he said. “McDonald’s is obviously strong. But if it’s a weak franchise, it’s going to be a weak stock.”“All the big-name franchises are doing well right now because the whole stock market has been doing well since the lull in March 2020,” he added. “Especially all of the classic blue chip ones, and especially restaurants.”In the investment world, “blue chip” companies are considered to be leading, well-capitalized companies in their sector. That’s one reason why Kohrs has invested in blue chip franchise companies himself.“I’m in McDonald’s, and I’m in some Darden restaurants. I like both for the long term,” he said.<h4>Will a Minimum Wage Increase Hurt Restaurant Franchises’ Stock?</h4>Amid <a href="https://1851franchise.com/more-americans-are-quitting-their-jobs-that-could-be-big-news-for-franchising-2715994#home">widespread worker shortages</a>, a <a href="https://1851franchise.com/new-study-reveals-how-many-americans-are-ready-to-dine-out-again-2715641#home">pent-up demand for dining out</a> and threat of another <a href="https://1851franchise.com/is-the-global-housing-market-about-to-crash-2716005#home">global financial crisis</a>, franchise businesses, especially restaurants, are also facing a fight to <a href="https://1851franchise.com/a-battle-for-the-wages-2715387#home">raise the minimum wage</a>. But stock investors are also wondering whether or not a minimum wage increase will kill stocks.Economic events and companywide announcements tend to influence the market more than anything else. “You get big movements with earnings announcements especially. Tesla, for example, experiences movement when they announce a new car or a new battery,” said Kohrs.But what does that mean for franchise company stocks?Kohrs believes franchise company executives will push for a message that a minimum wage increase would ultimately hurt the company. “The higher ups would try to fight against it because they would argue it would eat into their profits,” he said. “If they’re paying their staff less, it would come out of their pocket. But this world doesn't live in a vacuum, so there could be secondary and tertiary layers to it.”In February, however, Business Insider reported that Wall Street is not showing <a href="https://markets.businessinsider.com/news/stocks/minimum-wage-walmart-washington-debates-wall-street-2021-2-1030102640?utm_source=1851franchise.com&utm_medium=article&utm_campaign=popular-youtuber-and-retail-trading-expert-matt-kohrs-weighs-in-on-franchise-stock-investment-2716058" target="_blank" rel="nofollow">any signs of concern</a> about the minimum wage increase, as it believes the proposal will never pass, most companies can afford the pay push and some companies (like Amazon, Best Buy, Costco and Target) have already started increasing their starting pay.<h4>What Does a Post-Pandemic Stock Market Look Like?</h4>Despite the stock market’s current flourishing state, the question on everyone’s minds is whether or not it will last, especially as the world puts the COVID-19 pandemic in the rearview mirror.Kohrs foresees a potential downturn for the stock market. “The overall stock market could take a hit, because the government sees a disparity between the stock market and the actual economy,” he said. “So the stock market might dip, but the economy will improve.”For franchise company stocks, however, Kohrs predicts they will remain steady. “As the world opens back up, it’s better for franchises because people are going to be actually using the franchise again,” he said.

Popular YouTuber and Retail Trading Expert Matt Kohrs Weighs in on Franchise Stock Investment

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Popular YouTuber and Retail Trading Expert Matt Kohrs Weighs in on Franchise Stock Investment

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