Company Focus – McDonalds

With all the current incessant bad news we notice on a daily if not by the hour basis it is always nice to locate stories of success from the investment world – some sort of follow up to my publish on Blackberry showing the hazards involved with doing business across region and in Blackberry’s case the existing struggles it faces.

Where ever you live in the world McDVoice Survey is actually a brand that most have heard regarding – whether it be the Big Macintosh or Ronald McDonald the particular burger restaurant has had a huge worldwide impact – the corporation is located in 119 countries together with over 31, 000 eating places and serves and unbelievable 47 million customers daily. In the last decade McDonalds possesses undergone a massive revamp of the trademark – from the menu for the addition of cafe type options and wi-fi. Typically the obesity epidemic saw Pizza hut offer menu option regarded more healthy and appealing to a new wider range of consumers. Often the revamp has proved a very success driving an increase in consumer visits and sales ending a share price containing gone up almost 147% throughout the last 10 years and an 18% increase in market share in the US. It truly is one of the few US companies who has shown growth during the existing recession.

Arguably McDonalds features proved more successful overseas compared with the US. In Europe, the location where the recession has been as intensive (if not more) because the US, 41% of all revenue now come from the region (up from 33% in 2000) – in fact France hosts the most profitable McDonalds on earth. France also has the variation as being one of McDonald’s most effective growing regions. Over the last 12-15 years McDonald’s overseas income have steadily increased : today they are responsible for 65% of overall earnings. Whilst it has been a later entrance inside developing world McDonalds will be making quick headway. Coming from my perspective there is apparently a McDonalds on every spot here in KL – and perhaps they are always full.

One reason B has always been a great stock is that it owns almost one half the land and seventy percent of the buildings its dispenses sit on. It makes McDonalds one of many world’s largest rental organizations – even if sales slide McDonalds has a steady stream of rent it gathers from its franchises. Thus while the criticisms remain above McDonalds and obesity this company has adapted to the transforming environment with remarkable accomplishment. You only have to take a look at mid-foot ( arch ) rival Burger King to know how successful McDonalds have been.