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I am a college student currently living in the Northeastern United States. My blog is for those seeking to invest in the teen sectors.
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  • McDonald’s Corporation: MCD 0 comments
    Aug 4, 2010 2:11 PM | about stocks: MCD, BKC, WEN, YUM
    It is pretty obvious why McDonald’s is among the most successful companies in the fast food industry — it’s quick, it’s easy, and they have the Dollar Menu, which made cheap food even cheaper. Also they are just the most convenient.

    You can only have two.

     

    No matter where you are, it is safe to assume that you are relatively close to one of McDonald’s 32,478 worldwide restaurants (6,262 are company-operated and 26,216 arefranchised). If that doesn’t seem like a very impressive number, let me do some math. If you went to a different McDonald’s establishment every day of your life, you would reach the final McDonald’s just about a week before your 89th birthday, assuming no new McDonald’s opened up anywhere during your fairly extensive lifetime. So, just to recap, McDonald’s has about 3,862 more locations than there are days in the average U.S. citizen’s life expectancy.

    Truly an impossible task.

    Of course, McDonald’s Corp. has had their fair share of controversy. Of course, everyone knows about the infamous McDonald’s coffee case: in 1992 Albuquerque resident Stella Liebeck, 79 at the time, suffered from 3rd degree burns on 6% of her skin after she spilled a cup of hot coffee purchased from a McDonald’s onto her lap. This was followed by skin grafting, weight loss, and two years of medical treatment. In the end she was granted $2.86 million. This is also the only time I have ever heard of anyone actually buying coffee from McDonald’s.

    Then there was the time in 2002 when McDonald’s paid $10 million to various Hindu and vegetarian organizations after it became known that the famous golden fries were not as ‘meat-free’ as had been advertised. And who could forget in 2003 when McDonald’s fought back and attempted to sue fancy food critiEdoardo Raspelli for $25 million because his negative review allegedly hurt business, as negative reviews are so wont to do. And even now, in this very day and age, Ronald McDonald may or may not be legally forced to ‘retire‘ for being too good at what he does.

    The clown is to blame

    In conclusion, McDonald’s isn’t going anywhere because most people really don’t care about that sort of thing. Yes, it’s not the healthiest, but as long as you limit your visits it probably won’t kill you. Regardless, people will always need a place nearby wherever to get a semi-decent meal at 3a.m. on a budget of $12 or less, especially in this wintry economic climate. McDonald’s satisfies this need, law suits and enabler clowns and gay French commercials aside. Mickey D’s is here to stay. Since 1940.

    Now, you’re probably wondering: “How can I use McDonald’s incredible financial success for my own gain?” Well, if you own McDonald's stock, you get a $2.20 dividend a year for each stock, which is something. And so now you may be wondering: “$2.20? That’s stupid. How much money does the average McDonald’s restaurant makes in a year?” And I’m glad you asked. The average sales of a U.S. McDonald’s is said to be around $2.3 million. That is for each single restaurant. What is 2.3 million multiplied by 32,478? Well, I’ve got a calculator right here and it is … 74,699,400,000. Oh, wow. And, you know, they’re opening more of those restaurants all the time. Specifically I’m talking about 500 new McDonald’s in China over the next three years.

    Stock Chart: MCD, BKC, WEN, YUM




    Disclosure: Long MCD
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