McDonald's (MCD) on Wallstrip

Posted by Howard
on February 12th, 2007

It’s too late. They already spun off Chipotles. TransFat in a box is so dead! It was 18 bucks a few years ago, where were you than!

All good points for sure.

I don’t own the stock and Chipotles (CMG) is the only restaurant stock for me.

Still there must be something to learn from this meteoric rise from the dead and maybe you could spot it next time. On Wallstrip today we speak to McDonald’s gourmet coffee, McCafe, carrots, removal of transfat, China drive throughs and PORN (just kidding :) ).

You could also point to a strong stock market, real estate values, a smart investment in Chipotle’s, a weak dollar, and great management.

Here is a look at their latest earnings report – WOW!

Here is a chart of the last five years . Here is the lifetime chart .

One big lesson from mcDonald’s history is that great brands can make comebacks. It will be a chart I look at when Chipotle’s hits the inevitable bumps in the road as a young public company and from market traumas. It is a chart I look at when I get emails about the rising cost of corn on Chipotle’s tortillas.

Brian has a good technical take on the price action of the stock:

I love the new store redesigns, I think there is a hidden real estate (hedge fund) play, I think they really benefit from China and a weaker dollar as they go deeper globally and I think they outperform most restaurant stocks over time.

That said, I will leave it be and admire it from afar.

Disclosure – Long Chipotles (CMG)

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