The reason mcd is up so much this year is that their same store sales have been smoking, thanks primarily to the new Mcgriddles. Those things are great btw! It remains to be seen if management can continue the momentum.
Cattle futures prices are up over 40% since the beginning of the third quarter and up over 15% since the beginning of the fourth quarter. I have not calculated the impact on MCD's costs, but that might be material, unless they can offset the cost increases by boosting the prices of Big Macs, etc. TSN had a good day today due to the high price of beef. A good day at TSN might one day mean a bad day at MCD.
Food cost is one of the lowest priced variables in the MCD's equation. We ain't talking prime grade beef here. LOL. Besides they're big on the production end. A spike in paper products (bags) hurts them more than this run up in LC.
This is only true of US market. MCD gets major revenue from outside USA. Also factor in lower dollar and its positive impact for MCD.
In December 2002, Diageo sold Burger King Corporation to an equity sponsor group comprised of Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners
Just covered half of my position @ 25.57. So this a small profit of about 2%. Try to let the remaining pos. go. MCD is moving very slowly, that sucks.
MCD is gaining momentum on the downside. Just covered the rest @24.93 with a profit of about 4.8 %, which is OK for a boring and slow stock like MCD. Ready to reenter again. You don't have to know everything in order to make money, but you have to take action.