I’m not a close follower of this stock, so I hope someone can give me some insight, but I am wondering how this stock has increased 400% during this last 5 year bull market and has still kept all of it’s gains (and advanced) since the markets started to crash…
Before someone gives me the Jim Cramer “More people eat at McDonald’s in a recession” answer, do yourself a favor and look at the stock price history during the last bear market (2000-2003). It showed ZERO resistance to the decline and tracked the bear market very closely.
What’s different this time? Is this just a stock waiting to be shorted???
I’m not a close follower of this stock, so I hope someone can give me some insight, but I am wondering how this stock has increased 400% during this last 5 year bull market and has still kept all of it’s gains (and advanced) since the markets started to crash…
Before someone gives me the Jim Cramer “More people eat at McDonald’s in a recession” answer, do yourself a favor and look at the stock price history during the last bear market (2000-2003). It showed ZERO resistance to the decline and tracked the bear market very closely.
What’s different this time? Is this just a stock waiting to be shorted???
Call me crazy, but I believe during that time period there was mass hysteria over carbohydrates, A.K.A The Atkins Diet. Bread and fries were out.
Is the company really worth 4 times what it was 5 years ago even through the largest recession that we will ever witness? I guess some companies are recession proof. What happened to all the others?
I haven’t followed McDonalds lately but I know they were expanding into new markets outside of the US and not counting on the US for all their business anymore. I know they were moving into central america, China and other areas. So that would help keep their sales up. Otherwise maybe all of their stockholders follow Cramer and the bald headed guyy on Fast Money without thinking.
What else does McDonald’s own? Did they acquire any assets over the last 5 years?
I think KFC, Pizza Hut, and Taco Bell are all owned by Pepsi. I’d bet MCDonald’s Corporation probably owns a lot more stuff than just the fast food restaraunts.
What else does McDonald’s own? Did they acquire any assets over the last 5 years?
I think KFC, Pizza Hut, and Taco Bell are all owned by Pepsi. I’d bet MCDonald’s Corporation probably owns a lot more stuff than just the fast food restaraunts.
Just a thought.
Where have you been? :smiley: KFC, Taco Bell, and Pizza Hut were spun off from Pepsi about 20 years ago. They now roll up under "YUM Brands" food (David Novak maybe?). Anyway, they are a good company.
I’m not asking why McDonald’s is so large. I’m just pointing out they their stock has held out suprisingly well in this economy. There are no other food and beverage companies from what I can tell that haven’t been affected by the economy. Take a look at YUM for instance and compare it’s 3-year chartt to that of the S&P. It’s almost identical. The same goes for Coke (KO), Kellogs (K), or any other stock you plug into the equation over the 3 or 5 year period. I would think that guys are affected by commercial property, lending, higher supply costs, etc all the same.
Growth overseas? YUM and KO have that too. Something else is going on. I think that eventually the stock will come raining down as well.
