MCD is in big trouble. May not exist in 5 years

Discussion in 'Stocks' started by hajimow, Apr 15, 2015.

  1. hajimow

    hajimow

    Quality of food : very bad
    Price: Not cheap
    Competition: a lot of better restaurants for healthy and junk food lovers.

    The down trend for MCD has started a while ago and it seems that new CEO is not the solution. Fighting with Taco Bell is not a solution. Now the news is that franchisees are not happy. I believe their result should not be good on April 22nd. While market is up today, MCD dropped more than 1%. Watch for a $5 drop in a week.
    You cannot rule out the possibility of MCD being out of business in 5 years.
    https://finance.yahoo.com/news/mcdonalds-broken-franchisees-furious-133644537.html
     
  2. Ar you kidding? People are now where near that smart. When it comes to food the average American is about as smart as a barnyard pig.

    The hoi polloi will continue chomping down greasy fries and burgers until their arteries clog, regardless.
     
    Last edited: Apr 15, 2015
  3. clacy

    clacy

    You're not applying good logic if you think a restaurant chain with 35,000 units with an average sales of $2.5m per restaurant will go out of business in 5 years
     
    skotten84 likes this.
  4. S2007S

    S2007S

    out of business? Im bearish on MCD myself, no position but to think they won't exist?? I make some wild predictions but this is one I would have to say I don't agree with, There is more of a chance of 10% correction in 2015 then MCD closing up in 5 years....
     
  5. hajimow

    hajimow

    after 4 years they can be bought at $10 per share by a rival and be renamed
     
    Gimpyron likes this.
  6. dbphoenix

    dbphoenix

    The book value is 13.35, so one can expect at least that.
     
    Gimpyron likes this.
  7. romik

    romik

    Not sure about it going under, just had some grub out of there yesterday, burped a few times afterwards, still biggest fast food worldwide brand. But, there is a DT on its chart, so me thinks $55 zone.
     
    Last edited: Apr 15, 2015
  8. I don't think MCD will disappear but IMO clearly accounting has been used to hide sins in many large firms since the late 1990s at least.

    Therefore of your 13.35, IMO 4.50 would go to lawyers, a couple of bucks to the parachutes for senior executives, and surprises would appear to claim some more "value". Perhaps there would be class action suits for investors, but not to traders who made money who would be specifically excluded.

    If you are long the stock and unable to sell, perhaps your best bet is to start eating every meal at MCD as a hedging strategy. LOL.
     
  9. dbphoenix

    dbphoenix

    That depends in large part on the value of the real estate as McD is essentially a real estate company.
     
    Gringo likes this.
  10. hajimow

    hajimow

    I said after 4 years. Assume 4 years of bad results and getting out of favor. Big companies when they don't do well, they create big losses.
     
    #10     Apr 15, 2015