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McDonald's

Discussion in 'Money & Finance Forum' started by CunningRunt, Nov 9, 2008.

  1. chipshotx

    chipshotx Full Access Member

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    LOL
     
  2. gridfaniker

    gridfaniker Loathsome

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    the subhumans who eat there really can't be considered "people."
     
  3. CunningRunt

    CunningRunt Full Access Member

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    I was talking specifically about "Fast Food Nation" being an eye opener. Did you know the red dye in things such as strawberry yogurt or milkshake comes from some beetle in South America that is ground up? The book also goes into detail about Slaughterhouse operations. That's what I'm talking about. I don't disagree that the food is bad for you. I personally don't eat at McDonald's more than once every other month or so.

    I'm speaking about it purely as a strong investment during a recession.
     
  4. Wonder Woman

    Wonder Woman Full Access Member

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    Historically, Campbell's Soup has done well during recessions.
     
  5. chipshotx

    chipshotx Full Access Member

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    No, but it doesn't surprise or alarm me in the least. Dyes have been used for who knows how many thousands of years. Where do you think they came from?
     
  6. python

    python It Happens

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  7. spud

    spud Full Access Member

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    I would think beetles would be good for you.
     
  8. 49erpi

    49erpi Full Access Member

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    They feel it like just like the rest of the industry. Gas prices have driven food and product costs through the roof for everyone in the food service business. They may look busy but I'm sure they do more value menu BS than ever before and product cost is higher than ever.
     
  9. CunningRunt

    CunningRunt Full Access Member

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    They are actually talking about getting rid of the Double Cheeseburger and introducing the "McDouble", which is basically the same thing with one less slice of cheese. They plan on raising the price 10 cents or so to help the profit margin. They already have a net profit margin of around 20%. Compare that to Darden Restaurants, which has a profit margin of around 5% for 2008.

    McDonald's overall has been ahead of the curve by introducing "snack wraps" and premium coffee to their menu. They pull customers away from Starbucks and Caribou with that. While Starbucks is closing 600 stores, MCD is still going strong.
     
  10. 49erpi

    49erpi Full Access Member

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    No doubt they are king of the fast food hill still but they are feeling the effects of the recession just like everyone else. That is why they are making changes to hit margins. They continue to grow because they franchise.

    Comparing them to Darden is like comparing apples to oranges in any economy. I would guess that these days their lower end stuff Olive Garden and Red Lobster are carrying the corporation.
     

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