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McDonalds Stock: The Cost Of Good News

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McDonalds stock has delivered 14% annual returns dating back to the 1960s. What makes the company so impressive is that not only has it trounced its competitors since that time, but it actually has no fast food peer from the 1960s that is still solvent and publicly traded. Funny enough, the only real competitor that has continued to make money for its owners is White Castle, which is privately held.

Among many advantages for McDonalds is the fact that it is essentially a real estate empire in disguise. Ray Kroc insisted upon buying up centrally located real estate near major roads in town and right off of major highways. This land was purchased at a time when land was cheap in the United States, giving McDonalds a sort of perpetual advantage among the set of customers that spontaneously decide to eat based upon what is nearby and that which is … Read the rest of this article!


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