McDonald's (MCD) on Wallstrip

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)


  1. candice says:

    I’ll probably face the fly’s wrath for this, but it doesn’t take much to beat Starbucks’ regular coffee. Burnt. (Their espresso-based drinks are fine.)

    Andy, I wouldn’t call it politically correct as much as I would call that kind of trend “fashionable.” Political correctness is out of style, too.

  2. Andy Swan says:

    Once it becomes politcally correct to hate a company, and an incredibly stupid “documentary” gets a standing ovation in France because some dumbass stuffed his face with bad decisions for a month… the stock is bottoming everytime.

  3. Brian says:

    CMG looks like it is ready to bust out and there are still 4.8 million shares short, what are they thinking?

  4. Bill aka NO DooDahs says:

    Ditto on SBUX coffee – it SUX. But it’s a trendy place to go, or at least, I’m told it is, I wouldn’t know. Coffee aficionados should at least try Independence Coffee (www dot independencecoffee dot com) and order a gift pack. Great stuff, we drink about 3 pots a day here at the house and the folks who run it are nice.

    About those trans-fat-free fries, MIDD has a new machine for that, and they have a good chart, too. I’m long MIDD.

    Howard, I know you love the widgets, but I hate them. TOO MANY! Takes forever to load, and I get “line stack errors” every time I visit.

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