Poor McDonald’s. It seems everyone rips their food, some blame it for the ever-increasing epidemic of obesity and the financial markets are basically apathetic about its stock. It’s not loved like Chipotle with its organic food, Margaritas and soaring stock price. But maybe McDonald’s deserves better, if for no other reason than out of pity. McDonald’s owning a nice chunk of Chipotle, which allowed for the fast-casual restaurant to rapidly expand, and then selling it in 2006 is considered one of the greatest business mistakes of all time. Never has making a billion dollars felt worse. But business goes on for McDonald’s and it still gets some things right.
Living out of a suitcase for a couple of weeks, where else could I have gone in the morning to get a decent cup of coffee, low-fat milk and a breakfast burrito for $3? Good quality, fairly nutritious and did I mention it was just $3?
Then there is McDonald’s stock. See the interest rates banks are paying you for your money? Under 1%. McDonald’s dividend is paying over 3.25%. Yes, the stock price can drop but that just means your reinvested dividend buys more shares of McDonald’s. Over the long haul, McDonald’s has appreciated in price. And its fries are still the best.