McDonalds (MCD)

[LenaHuat]

The Old Mac is doing very well in Europe :

Europe is now McDonald's largest region by revenues, despite having roughly one-quarter the number of outlets as the US.

Read this fascinating report in the German Daily :Spiegel
"A Golden Recipe for McDonald's Europe":
http://www.spiegel.de/international/business/0,1518,566619,00.html

[b0rderc0llie]

Heard from a friend that McDonald's business is real estate. In the US, they own the properties which they rent to the people running McDonald's franchise. I wonder if it is also the case in other countries.

It is an interesting business model and is in my watchlist.

[kennynah]

it is true everywhere in the world...their business is in real estate...selling burgers/fries is just a disguise

[b0rderc0llie]

Is MCD's property prices depressed now because of the sub-prime crisis? Is its share price also affected?

I'll like to buy MCD when it is weak and business is bad, so that I can benefit if things eventually recovers.

[LenaHuat]

Subprime is in the residential sector. The fear is that it could spill over to the commercial sector.
MCD's share price is holding up well.

[kennynah]

mcnona earnings and revenue beat expectations

*********
McDonald's Climbs In Pre-Market On Strong Quarterly Results
7/23/2008 8:43 AM ET

(RTTNews) - McDonald's Corp. (MCD: News, Chart, Quote ) is on the rise during pre-market trading on Wednesday following the release of better-than-expected quarterly results.

At 8:39 am ET the stock is trading at $61.75 up $1.71 from Tuesday's close.

With the advance, the stock stands to open above resistance and at its highest level in about two months.

The company reported net profit of $1.20 billion, or $1.04 per share, compared to a loss of $711.7 million, or $0.60 per share, in the same quarter last year.

On average, 15 analysts polled by First Call/Thomson Financial expected earnings of $0.86 per share.

[winston]

Despite a tough U.S. economy, McDonald's Corp. posted an 8 percent gain in July same-store sales on Friday as hungry consumers worldwide lined up for breakfast items and the classic Big Mac sandwich.

Many consumers have cut back on eating out amid economic weakness and rising gasoline prices, but business at the Golden Arches held up well in July, especially in the U.S.

International sales have typically been strong for McDonald's – a trend that continued in July. Same-store sales jumped 7.6 percent in Europe, led by sales in Britain, France and Russia. And in the Asia-Pacific, Middle East and Africa region, same-store sales climbed 7.2 percent because of extended hours and menu items.

– AP

[winston]

Not vested.

McDonald's (MCD), the nation's No. 1 hamburger chain, said Tuesday its global same-store sales rose 8.5% in August, helped by a big jump in overseas sales.

The company said its U.S. same-store sales jumped 4.5%, driven by the company's breakfast menu, a promotion tied to the Olympics for the Southern Style Chicken sandwich and biscuit, and "everyday affordability" with a focus on beverages. In August, McDonald's priced its Sweet Tea at $1 nationwide.

Most restaurant chains are experiencing slower sales this year as consumers cut back on discretionary spending due to high gas prices, tight credit and the weak housing market. McDonald's – with its dollar menu and fast service – has fared better than most, but the chain has said it is not completely immune to the effects of the economic slowdown.

In Europe, where the economy is also slowing down in some areas, same-store sales climbed 11.6%.

– USA Today

[winston]

Not vested.

IT'S A BULL MARKET IN CHEAP, PART II by Brian Hunt

More evidence that it's a "bull market in cheap"...

As I mentioned in yesterday's column, it's tough to find an uptrend in today's market. Commodity investments are declining. Every stock market in the world is scraping new 52-week lows. But retail's world champion of cheap, Wal-Mart, is soaring right now. Also soaring is the food industry's world champion of cheap, McDonald's...

McDonald's is the world's largest fast-food chain. It uses its massive size, exceptional brand, and efficient distribution network to serve the cheapest food around... and it's one of the few places in America where you can still eat for under five bucks.

With mortgage and money troubles at all-time highs, business is booming at the golden arches. Sales grew 6% in the second quarter. Profits and dividend payments are healthy and growing. As America goes through the long slog of a real estate down cycle, expect the bull market in cheap to continue...

[winston]

IT'S A BEAR MARKET IN EXPENSIVE, BULL MARKET IN CHEAP By Brian Hunt

A look at the list of stocks hitting new yearly lows is a look at the big bear market in expensive food.

You might hear about this bear market through stories on America's top "luxury grocer," Whole Foods. Shares in "Whole Paycheck" have declined 75% this year as folks have eliminated their $500 grocery runs. Expensive steakhouses Ruth's Chris and Morton's are also getting clobbered... down 80% and 79%, respectively, since January.

The story here is pretty simple. When folks are having trouble paying off the car and home loans, they're more likely to eat $2 burgers than $20 steaks. Which brings us to an amazing chart today... the past three years in McDonald's.

As Tom predicted in July, McDonald's has held up incredibly well through the market turmoil. McDonald's sells the cheapest burgers and fries in the world. And while stocks of all types have been recently destroyed, Ronald's profits and shares have held steady. Expect this trend of "bear market in expensive, bull market in cheap" to continue.