the earnings missed but I guess it was there "turnaround" talk that gave the stock a 3% boost which to me makes no sense, isnt mcdonalds always in some kind of "turnaround" plan
Exactly. That "turnaround plan" is just another way of saying "Please give us time, we will do our best to solve the problem" It is not a secret, they are closing the stores. It is not called turn around. Maybe 360 degree turn around !.
Sounds like the short on Yahoo who predicted Genentech was going to $0 because, at some point, cancer will be cured. Genentech was purchased for $46 billion.
They are just failing at their core business strategy - serving food with consistent quality around the world. The European McDonalds have good tasting burgers, relatively speaking; and pretty decent standards while in the Philippines the food tastes horrible (hurray for high fructose corn syrup) and I for sure won't eat there unless there is no alternative. If a burger chain can't do a decent burger then something is really wrong.
I can't figure it out either. I stopped eating MCDs in the 90s because it would mess up my digestion. I have partaken in occasional menu changes, but they have been blah. However, it is very hard to overlook the vertical integration they have with food suppliers. It just so happens they have done it in the continent with the most arable land in production and at the highest productivity rate. They also maintain this integration globally. Now, if proven food supply chain expert explains to me that an edge is gone someway because it all comes from Amazon or Google then I might start to believe that MCD does not have a superior and lasting business advantage. Sure, MCD can't stop making the core product and the gourmet burger craze needs to die down. At worst, it's dead money for a long time. But, the dominance won't disappear.
Never buy a beef product from a small island nation. Unless it's Singapore who can afford to import the Australian Beef. Learn to like chicken and pork. Better yet, fish! What do you think of the Jollibee earthworm burgers?
That's the thing, Jollibee's more expensive burgers do taste better, despite lacking any lightness in taste (salads, sauces etc) and being too salty. If Jollibee can do it, I'd think McD can too. But you're right that I should lower my expectations for beef as it's more of an exotic meat compared to pork or chicken. I just couldn't believe that a McD burger that looks very much the same as in Japan or Europe could taste so much worse.
During the last 2 weeks I ate 2 times at MCD. I hadn't been there for almost a year. It was shocking to feel so miserable after eating their food. My stomach felt like a swollawed a soccer ball and I had a greasy taste in my mouth for the rest of the day. Generally speaking Europe follows the developments in lifestyle in the US with a lag of a couple of years. I can see hamburger boutiques coming to Europe in a few years, to give MCD the same problems as in the US. Also Mexican food has barely gained a foothold here, but that's again a matter of time.
Speaking of the valuations, aside from the crappy coffee in Panera Bread and good and so so food and great bagels, after today's earning I put a target of $120 for Panera. P/E is 27 and currently is trading at $180 with 2.5% down after the earnings. I know that it is hard to imagine PNRA to go to $120 but it is not worth than that and it shows how pricy the stock is.