On today's edition of Good Buy or Goodbye, Tematica Research chief investment officer Chris Versace joins Julie Hyman to discuss his top picks as consumers struggle with the rising cost of food.

Versace points to Costco (COST) as a buying opportunity as consumers cut back on dining out. He explains that the retail giant is "extremely well positioned" since about 54% of its product revenue comes from fresh food and sundries. He adds that Costco is taking wallet share as it continues to deliver value to consumers, pointing to its $1.50 hot dogs as one area of consistent value. The strategist also emphasizes that Costco has yet to raise its membership fee. When the price increase finally hits, he notes that consumers will likely continue paying their memberships, allowing the company to generate more revenue.

On the other hand, Versace is bearish on McDonald's (MCD). He reiterates that consumers are not eating out as much as inflation continues to pressure their household budgets and notes that the fast food giant is "no longer the cheap alternative." Despite rolling out value meals, Versace is unsure whether McDonald's can drive its margins higher over time. In addition, wage pressures have created headwinds for McDonald's in terms of hiring and maintaining its workforce. He notes that the company will have to make significant investments to overcome this issue and boost productivity.

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This post was written by Melanie Riehl