MCD just hit an all time high today two years into your forecast they were going out of business in 5 years. Share appreciation 50% and decent dividend.
Two years and 9 months into your 5 year forecast that this company would go out of business. Stock is up around 76% since and still pays a dividend around 2.5% annually.
I don't remember seeing this but MCD has been on fire since introducing all day breakfast, a few years ago. I highly recommend watching, The Founder, with Michael Keaton as Ray Kroc. The genius is they own all, the land, underneath every single franchise, then lease it back to, the franchisee. That early cash flow helped them explode in, the early years. Once or twice, a year, I'll have a Big Mac combo, but the day they disappear is the day I'm a trillionaire.
They've made some good moves in recent years after many years of neglect after Kroc died. It takes a while for a huge #1 in a sector to decline ( see also IBM ), and certainly the real estate aspect is a good one as long as they don't do what the Sears guy did and gut the company paying shareholders large dividends. It's a challenging sector but I think they've done enough to stay relevant even if they are no longer the force they once were.
I couldn't agree more and have followed, the Sears thing, from the beginning when Eddie Lambert merged it with Kmart. They had some good assets with Craftsman, their Sears Canada, and their auto dept. maybe, can't remember. Now it's a shell of itself and he's insulated his investment even in bankruptcy. The local Sears is closing, as it's been in it's current location, anchoring a mall for 50yrs, and over 100yrs total. I won't hijack this further but fast food always seems to hold up over fast casual or sit down restaurants. Bold ass prediction...probably need 10-20yrs as millenials and Z generation have changed everything.
MCD will be around for a long time to come. They are too progressive and adaptable to go away. Unlike Sears. All you have to do is shop either store, and do the analysis for yourself.
Most probably after my post, they found out that they should put their act together and do something, otherwise ........
Did they have all day breakfast when I initially posted this? That year MCD was DOW's dog. Check out the title of my post. It says MCD is in trouble and "MAY NOT" exist in 5 years. I did not say "WILL NOT" exist. Yes I carefully crafted my post. Since then, MCD renovated itself. branches are much cleaner and now BK is far behind them. I am happy that my post woke them up !
Good question! Maybe, they did listen as it started nationally Oct. 6th 2015 and this topic is from April? Just imagine how great Boeing and Caterpillar are going to do now?jk Hahahaha Tomato TOMato I agree as there was one, I used to go to, years ago, and had fire place, movies, nice couches. This other one locally, did a remodel, and their workers bring your food to you like a sit down restaurant, that started, last year. Burger King has a very different concept for new stores. The CEO of BK is low 30's, as he went from analyst to 3G deal maker and they put him in as CEO, a few years ago. The best idea, that sector, has had is $5 meals as KFC, Taco Bell, Hardee's/Carl Jr., and Wendy's all have them. Whether right or wrong, I'm always interested in your outside, the box, ideas.