A UBS analyst said Wednesday the policies of Sen. John McCain would benefit restaurant and packaged food companies more than those of one of his Democratic rivals, Sen. Barack Obama.
Analyst David Palmer said in a note to investors that McCain's stances on several issues being debated on the campaign trail would help restaurants and packaged food companies grow in a period of slow economic growth.
Palmer said, for example, that eliminating ethanol subsidies "would be a catalyst for lower food input costs" for restaurants and packaged foods companies. McCain, the likely Republican presidential nominee, has said he would push for an end to the subsidies.
McCain has also signaled he believes immigrants contribute to economic growth in the U.S., Palmer said. If he was elected and enacted policies based on that stance, the analyst said "labor-intensive" restaurants and food companies would benefit.
The candidate's tax platform _ including lowering corporate tax rates and removing the alternative minimum tax _ would also help pad margins and boost consumers discretionary spending if those changes were enacted, Palmer said.
In terms of health care legislation, the effect of a McCain presidency would be mixed for restaurants and food companies. Palmer said companies would be worse off if McCain were to require them to contribute to a national health insurance plan.
Earlier this week, McCain unveiled a plan that would propose offering tax credits to individuals and their families so that people will buy health insurance on their own rather than through an employer.
Obama, meanwhile, has called for a national public health insurance program that would require companies to provide coverage for all employees or contribute to the public plan.
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