McDonald's?

[BigNick]

Here is a photo of one of the nicest McDonalds I have ever seen. It's in Porto, Portugal. Note the pastry case. No fried apple pie here.

The McCafé concept has caught on in a big way in Europe. Unlike Starbucks they do not emphasise proprietary beverages ("frothy double-sludge sloppaccino quaranta" or whatever); people mostly order whatever the favourite local coffee is, plus perhaps a small premium pastry. McCafé also does good early-day business in countries where an Egg McMuffin and a hash brown would be considered 200 calories too much for breakfast.

 

[Totoro]

sloppaccino

I'm stealing this - not sure when I'll use it, but I'll find a way.

 

[NW-Bound]

As we rarely eat fast food at home (once a year or less often), we ate at McDonald's only a few times when in Europe, and it was for convenience. I still remember the hamburger was OK in Brussels, but the most recent one in Sète, France, was unbelievably bad. When people say something tastes like cardboard, they really don't know what they are complaining about and are exaggerating. What I ate was really like cardboard.

I am not a finicky eater, so this is I believe the first time I use the above description. The only redeeming point was that I could have a small Heineken instead of soft drink, and I did.

 

[Ready-4-ER-at-14]

I just sold 2/3 of my mcd stock today at open of market. My logic was
my entry was nearer to 50 held in a tax deferred account. Per yahoo financial eps of 7.54 so value of company for 20 years of earnings assuming no growth was ~150.

I am aware that staff reductions by ordering via apps and touch entry in lobby should increase some profits to owners for a while.

Final reason was I can get more than the forward dividend yield in fixed income.

They do have earnings announcement April 29th so I may hedge this sell by buying a three month call with some of the profit.

 

[Ready-4-ER-at-14]

Update on MCD when I posted about selling MCD was at about 186. It peaked around 219 on 8/13 and is currently around 196 on 10/24. Apparently it missed earnings.

It seems that the US was lagging in sales. Company has done a lot regarding delivery in many markets. Locally in store delivery is fast but they want you to pay at a free standing kiosk with credit card and enter order there. You take a numbered cone and someone brings order out.

Prices have jumped a bit, competitors have better deals. Food is good though.

I don't think Mickey d's is my kind of place any longer. It's no longer the hap-hap-happy place I remember.

If I get back into it I think it would be around another 3 months at a price nearer to 180 so dividend yield would be around 2.7 %. When I look at a 5 year chart price range is kind of in a widening channel though.

 

[GenXguy]

MrRib's are available again here. Those things are great but getting more expensive all the time. There's always a bump in prices with increases in minimum wage in this state, and it's scheduled to go much higher, so I'll be cutting back further on eating out.

That said, I don't own McDonald's stock or individual stocks in general, only as part of a mutual fund or ETF.

 

[braumeister]

I shudder at the thought of eating at McDonald's, although I seriously loved their fries back in the days when they cooked them in beef tallow.

Actually, the most vivid memory I have of them was from 1976 in Munich. I was walking down the street wondering which wonderful German restaurant I was going to have dinner at, when I saw a line of people on the sidewalk waiting to get in to some place. As I drew closer, I saw that it was a McDonald's (I had no idea they were in Germany back then). There was a big sign in the window advertising the "Viertel Pfunder" (quarter pounder) and the Germans were lined up to try it.

That experience taught me that the company knew how to market themselves better than most, and I've made a chunk of change over the years with their stock.

 

[Sunset]

I'm surprised pork prices have not skyrocketed as the African swine flu has wiped out many herds in China.
Pork is a big thing over there and it's up 50% in price in the last year over there, (from what I read).

So better get your McRib quick before their gone...

ps - I happily have stock in McD

 

[Freedom56]

There are better places to get a much better burger... In-N-Out, Shake Shack, The Habit to name a few.

 

[JoeWras]

The only time I go is for McRib, and even then, once per season. I slipped and went twice this season.

Something about the raw onions and sauce. I could probably eat one without the meat. Weird.

Otherwise, I live in BoJangles country. I'm a sucker for their biscuits.

 

[Red Badger]

I shudder at the thought of eating at McDonald's, although I seriously loved their fries back in the days when they cooked them in beef tallow.

Actually, the most vivid memory I have of them was from 1976 in Munich. I was walking down the street wondering which wonderful German restaurant I was going to have dinner at, when I saw a line of people on the sidewalk waiting to get in to some place. As I drew closer, I saw that it was a McDonald's (I had no idea they were in Germany back then). There was a big sign in the window advertising the "Viertel Pfunder" (quarter pounder) and the Germans were lined up to try it.

That experience taught me that the company knew how to market themselves better than most, and I've made a chunk of change over the years with their stock.
View attachment 32885

I was at an airport hotel (NH?) in Vienna several years ago. Didn't want to pay ~20 Euros for breakfast, so I walked to the nearby Mickie D's. I happily ordered a "sausage sandwich" that came on a bun (not a biscuit). To my horror, it also came with lettuce and Mac sauce. I knew then that I was behind enemy lines. I decided to walk several miles for an ie and kartofellen (egg and potatoes). Then, all was right in the world once more.

However, in full disclosure, when I was stationed in West Germany, me and a buddy would occasionally travel 20 + miles to the nearest M' D for burger. 1980's Germany had no concept of a hamburger (but they had Pomme Frittes nailed).

 

[HFWR]

As I drew closer, I saw that it was a McDonald's (I had no idea they were in Germany back then). There was a big sign in the window advertising the "Viertel Pfunder" (quarter pounder) and the Germans were lined up to try it.

While w*rking in Japan in ‘85, we took the train to Tokyo. Though we had shabu shabu for lunch, the McDonald’s a few doors down was hopping.

Next door to them was a topless bar... [emoji51]

 

[jazz4cash]

I like the fish filet and breakfast sandwiches. The kiosk is OK but customers seem to hate it and some locations seem to be reluctant to deliver food to your table. I’ll be cutting nearly all my business due to no longer having the option of white cheddar cheese on breakfast sandwiches.

 

[MRG]

I pick up breakfast a couple times a week. I don't like the double line at the drive thru, I feel trapped.

Years ago when I traveled internationally it was nice to go to a McDonald's for a taste of something familiar once in a while.

 

[FIREd]

I sometimes eat at McDs in my area (eastern France and Switzerland). The restaurants look nice and clean for the most part, and the food is good too. Love the kiosks. My last Big Mac looked good enough to be in a commercial. When I lived in the US, there were better alternatives IMO.

 

[PoorOldCountryBoy]

No, I'm not hungry. What are you thoughts on McDonald's as an investment? Potentially a good global recession proof stock.

[mod edit]

One of the first stocks I bought for my son's account then around $50/share. They are simply the best large scale operators out there. The impressive thing with them is how they can change when styles change like adding salads etc. The addition of Newman's own coffee and getting rid of the swill they served before was a wonderful improvement.

They answer a great need - my wife and I can get a meal for under $10 that is prepared well and rapidly anywhere in the country in a clean well maintained restaurant. It's tough to beat.

I know they sometimes miss the mark but if you compare to most other chains the are still the gold standard. If you look at all the haters that pile on the company, it's pretty amazing they continue to do as well. [Food snobs pleeeease don't start the nit picking or virtue signaling. We all know you're superior to everyone ]

Future returns will likely be muted as there is less growth ahead, but if you can be satisfied with 8-9 percent total return long term, not a bad place to invest. If you are the patient type put in a buy order around 170 or less.

 

[steelyman]

I know people who get totally thrilled when McRibs are rolled out from time to time. I wasn’t sure why so I had to try one and it didn’t do it for me.

It will be interesting if they make a move to plant-based offerings. They seem to have opened well at competitors like Burger King but I think it’s too early to tell if that will stick.

I’m really, really curious to try a plant-based version of a long-time favorite: White Castle!

 

[braumeister]

I know people who get totally thrilled when McRibs are rolled out from time to time. I’m wasn’t sure why so I had to try one and it didn’t do it for me.

They're just people who don't make their own BBQ at home.
I can get wonderful racks of baby back ribs for $10 each at Aldi's, cook them on the Big Green Egg for maybe 25¢ worth of charcoal, and have an incredible dinner a few hours later. The piece of ground up and compressed meat slathered in a ketchup-like sauce they call McRib is simply not in the same category. But if you don't know any better (like me when they were first introduced) it's pretty good.

 

[steelyman]

They're just people who don't make their own BBQ at home.

I can believe that, and my skills at BBQ are lame at best. But not bad and pass my taste test which is what matters.

I bookmarked a well-reviewed place in Cincinnati while still living in the midwest called Montgomery Inn. I’ve never ordered anything as it’s pricey. I don’t think I’ll acquire a taste for BBQ as prepared in NC but it has its devotees for sure.

 

[braumeister]

I bookmarked a well-reviewed place in Cincinnati while still living in the midwest called Montgomery Inn. I’ve never ordered anything as it’s pricey.

That's a very old family-owned place that is well known for their version of BBQ. Not what it used to be though. These days they mostly cook the meat in the oven and cover it with sauce. Still popular for family and work gatherings, but not really what you're looking for.

There are much better alternatives here. First recommendation would be Eli's BBQ (several locations) and also City BBQ (also several).

 

[JoeWras]

They're just people who don't make their own BBQ at home.
I can get wonderful racks of baby back ribs for $10 each at Aldi's, cook them on the Big Green Egg for maybe 25¢ worth of charcoal, and have an incredible dinner a few hours later. The piece of ground up and compressed meat slathered in a ketchup-like sauce they call McRib is simply not in the same category. But if you don't know any better (like me when they were first introduced) it's pretty good.

Brau: I know better, and I still like it. There's something about the glorious fakery of it all. I know it is compressed crap put into fake forms, but that's OK. Once per year. I would not make a diet of this.

I have a similar fake love for "Soft Batch" cookies. About once per year when we hit the road, I have to find a package at a truck stop. They may be one year old for all I know, but the glorious chemicals giving it the soft texture makes it all OK.

I'm just glad I don't have these hankerings all the time. This stuff has to be really bad for you.

 

[Kwirk]

I like the McDonald's phone app. The grand-kids have particular wishes about their orders. I put their special orders in once and now ordering for them is a snap. I can go in to wait for my order or have it delivered to the car. My only gripe is that I can't submit the order until I'm actually in the parking lot.

 

[aja8888]

It will be interesting if they make a move to plant-based offerings. They seem to have opened well at competitors like Burger King but I think it’s too early to tell if that will stick.

I’m really, really curious to try a plant-based version of a long-time favorite: White Castle!

A close friend of mine here in Texas owns and operates 6 Burger Kings in the general area. We (my ROMEO Group) meet at one of his locations every morning for coffee, breakfast and chat. The owner meets with as as he is retiring soon and turning the businesses over to his adult children.

He said that his locations (trendy, HCOL area) has not been doing well with the new Impossible Burger (non-meat). Sales of Impossible were fast when it came out but now trail "the real deal burger". I guess that paying a $1.00 more for a fake Whopper has slowed the action down.

 

[GenXguy]

I guess that paying a $1.00 more for a fake Whopper has slowed the action down.

Yeah, I tried one. Over $6 with tax. It was ok, but I recently bought 2 regular Whoppers for less using a 2 for 1 coupon, and BK is always sending me coupons.

 

[ziggy29]

BK is dead to us. The last three visits, to three different locations, were all terrible. The service was slow, it took anywhere from 15-30 minutes for our order to come out, and all three times, the food was cold with one exception when the fries were actually hot.