MCD is in big trouble. May not exist in 5 years

i960 said:
Seriously? I haven't eaten at that place in literally years but MCD's burgers were ALWAYS the absolute *worst*. Pan-fried, greasy, cardboard textured junk. I never understood the allure of that place.

Anyways - this franchise (the brand overall) is definitely in long-term trouble. They better convert their chains over to their Australian style franchises if they want to think about surviving - otherwise it'll be riding soylent green into the sunset.

You have one life, one life only, and limited time on the planet. Don't shorten it by eating this junk on a regular basis.
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It really depends on the region. The absolute worst McD burgers I've had have been in the Philippines, it's clear they can't keep their global standards up with such big variation in quality.
Funnily enough, the best taste has been in eastern Europe where also the service tends to be all smiles - possibly because it doesn't have a reputation of being "that crappy burger place".
 
Quarterly numbers will be released on Thursday before market opens. From what I hear is really bad. US sales down 2% again. My today's trade is attached.

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ironchef said:
MCD up this morning after earning? Maybe they turned the corner?
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I noticed that. After another miserable Q, the stock started to go up to almost $100 at 45K volume!! before market opens. I shorted a little more. The stock dropped when the market opened. When a stock goes down, the sales performance wont be a straight line. Their US sales for the next Q might go up 1% and drop 6% in Asia. Ask yourself this Question: Why should one be excited about MCD? Will their burger cure cancer? Will their fries cure Alzheimer? It is just a burger. Unless their sales goes up 15% every quarter, I am not buying it. Now their dividend 0.85 cents is 2/3 of their profit. Almost like a utility company.
 
xandman said:
Decided to look up the history. 2/28/2008. Big cut. 1.50 to .35c. That's a brutal cut. Possibility is there.
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Now the Q profit was 1.23 and the dividend is 0.85 but the earning should deteriorate fast and if it drops below $1, they will think of cutting the dividend. If EPS drops below 0.85, paying that dividend would be funny. The reason for a short term spike is a little short covering and also some investors who "THINK" the business has turned around. Based on numbers, nothing has changed and it shows that things are getting worse. A little gain in profit is not because of high sale, it is because of cost cuttings like less TV ads,.... that might negatively affect future sales.
 
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