As a matter of fact yes... Doing quite well since I started buying in 1999. Sorry about your amnesia....
Why would they have good earnings? Prices went up so much - people are avoiding the chain, so it is illogical. On the other hand though - last time something alike happened in BA in February. It was going against the market, up all the time and then the earnings were fantastic while nobody expected it. It went up to $158 vertically running bears over like a tank over mud. Is MCD going up after earnings?
MCD's pricing does not make any sense. They have put themselves in direct competition with the higher quality chains. Since when is a Big Mac around the same price as a 1/4 pounder? mcd's degraded the quality of their food with the new cooking system, and then they randomly price items by popularity.. At my MCD the value meals are more expensive than buying the items separately, because of the dollar menu.. And if you want an egg mcmuffin and hot cakes,, you are paying about the same as IHOP.
Not a single manager at MCD's can explain why any size coffee is a 1.00, unless you get a value meal.. then you have to pay upgrade to get a large coffee.. so you actually pay more for a breakfast value meal than if you buy the items individually if you are getting coffee in the meal..
How are you in the green because you bought puts at $99? You haven't made a cent- only paid money.. I wish I could sell you a put on cutting the dividend- I'd collect twice every ninety days!
Franchisees are getting pounded by more and more required investments that won't pay off. Food, labor, tax costs rising. The 10% bottom line margins of the past are long gone, now down to 3 - 5 % if you're lucky. There is a lot of work and responsibility during a year to make $50,000 - $60,000 per restaurant. More and more franchisees are over leveraged and are seeing the writing on the wall. Some of their bankers are starting to be worried.
The future of this company is dismal. Top management have two loyalties, the stock price and their own compensation. Both will be worth less and less as time goes on and they continue this path of selling laboratory food that fewer and fewer people want.
Trade it all you want, buy the dips and sell the rips as long as the divi is here. Just don't bet that they will succeed long term. They are leveraging their base too much and you might see some fire sales of franchises which will lower the value of all of them. That will create more resistance from franchisees to upgrade and invest as required.
I've never seen the relation between franchisees and the company so heated. Many are disgusted and are not sure how to sell out without losing their shirt.
Long term sell on this beast that has seen better days.
Dividend cut is coming. Not sure when, but it is. How can MCD sustain a 22x PE? That's a multiple that a growth company can demand, not a dividend payer. How can that PE get back to the 14 or 15x where it should be? Earnings sure aren't going to grow by 50% to $6 or $7 per year because of the investment that is required in the US stores. More likely, the earnings will remain around $4.50 and the price will be $67. Once that happens, then "poof" there goes about 6 or 7 years of dividends.
Anyone who banks on American fast food Chinese growth is insane or maybe you haven't heard about China's fake growth numbers. Or maybe you havne't heard about the problems YUM is having in China -- and YUM actually sells food that the Chinese want.
Or maybe you have no idea about McDonald's Latin American strategy (stock ticker ARCO). Things are going so well in Latin America that ARCO stock has fallen from $25 down to $4.50 since 2012.
Or maybe you don't understand the concept of foreign exchange risk. Unless you are hedging in the FOREX markets (which I really doubt), then as long as we continue to have a strong dollar, the profit made overseas comes back in smaller amounts.
Plus, I'm already in the green since I bought the puts when MCD was at $99.
So, let's see who comes out ahead.
I can't sit around worrying that Indians own 7-11
Or other ppl own what
Couldn't care less
I just got to do what's best for my family
they also stole the "Big Boy" burger from Kips Restaurant and made it their Big Mac .... Kips had the Big Boy Burger long before Mickey D's came along , and it was exactly a "Big Mac" , I used to eat 'em all the time at Kips
Right on, and don't forget about the whining employees and their attitudes towards their fellow man when it comes to provide "service"... the entire McDonald's experience is a horrible one
They don`t even put mustard, mayo, or catsup on both buns!!! I stopped eating that killer food along time ago!!! And I am very surprised any parents at all let their kids eat that #$%$!! SELL, SELL, SELL!!!