McDonald's Sales Rose 5.4% In The U.S and 6.2% Worldwide

Discussion in 'Stock Market Forum' started by Rainman, Apr 23, 2016.

  1. Rainman

    Rainman Senior Investor

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    Since August last year, McDonald's stock has risen by over 50%. Their decision to serve breakfast all day long apparently has paid off. And there is some speculation that things will continue getting better . . . good news for investors I suppose.

    http://nrn.com/same-store-sales/how-mcdonald-s-got-its-groove-back
    Time to buy some McDonald stock or is it too late?
     
  2. Alex

    Alex Senior Investor

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    I still think McDonalds are struggling and it's more to keep afloat and to stay in the game rather than to close branches. The all day breakfast should have come sooner as people want cheap snacks and not always a burger. It's best to get people in a couple of times a day rather than just the once. People have so many options now, and as healthy food choices are needed, places like McDonalds still need to update their business models.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    I'm quite surprised by how well this has worked for McDonalds. I get the fact that serving smaller snacks instead of a whole meal brings in more customers but I don't really consider McDonalds a place I would go to for a small snack.
     
  4. Corzhens

    Corzhens Senior Investor

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    I am a customer of big breakfast and when the all day breakfast is served, I guess the sales will grow because of that scheme. But here in the Philippines, we noticed the hype of McDonalds regarding their chicken. Against the best-selling Chicken Joy of Jollibee (the main competitor of McDonalds) the gimmick of McDonald is their chicken is the favorite of Joy (the girl). So it is a direct clash between the 2 competitors and probably McDonalds is getting the advantage in the contest.
     
  5. richc3

    richc3 Senior Investor

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    The scale of McDonald's is so immense that it alters the global cost of various items like beef. When they introduce new or temporary items like the McRib (pork) it's actually a cost cutting measure when the price of beef is too high -- beef prices tend to drop afterwards.

    In any case, I think it was a brilliant move to have all-day breakfast in the US and I wonder how much of their gains is attributed to that.
     
  6. 111kg

    111kg Guest

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    One of the reasons I don't want to buy any shares is because they overwork their employees. It's almost impossible for a Mc Donald's employee to living solely from the paycheck he earns at MacDonald's, therefore their shares are a big no-no for me. I mean, come on, it's easy to make huge profits when you are underpaying your hard working staff.
     
  7. Alex

    Alex Senior Investor

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    The competition from other places such as Subway that do breakfast deals, and in the UK nearly every coffee shop does a meal deal too means that they have to competitive on price and value. If you consider a breakfast mean can be half the price of a burger meal, then naturally it will attract people in more often to buy their snacks. In addition they seem to have more vouchers available which means people will choose to come over another fast food place. It's about getting people through the door in the first place that matters.
     
  8. pwarbi

    pwarbi Senior Investor

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    One of the most asked questions used to be why dint McDonald's server their breakfast meals all day, and they're listened to their customers and made that happene.

    As a result, profits have gone up, bit just because of the extra sales, but because I think people like the fact that they've actually been listened to in the first place, and I think more companies need to do the same.
     
  9. baudwalk

    baudwalk Senior Investor

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    $MCD entry-level employees in the US protesting for a $15/hour minimum wage are going to be in for a rude awakening as machines and kiosks do not require pay increases, sick days and vacation pays. On the other hand, investors may well see a continuation of this year's stock price action after years of mediocre performance. Automation is making inroads, to whit:

    http://www.businessinsider.com/what-self-serve-kiosks-at-mcdonalds-mean-for-cashiers-2015-8

    http://newsexaminer.net/food/mcdonalds-to-open-restaurant-run-by-robots/

    http://www.thestreet.com/story/1351...dering-kiosks-in-europe-will-u-s-be-next.html

    In my opinion, $MCD must take steps to retain customers by curtailing the price increases of items on the menu. Personally, I find it incredible that the "standard" hamburger-based "meals" are now approaching $8. Breakfast items have crept up too. As a consumer, I'm not impressed. But then I can easily include Burger King, Arby's and other national fast food chains in the "not impressed" discussion.

    As an investor, $MCD and others in this market group do not interest me.
     
  10. baudwalk

    baudwalk Senior Investor

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