McDonald’s is in big trouble—and it could get even worse

Well Well Well, My ATS Amigos and Amigas, Looks like one of our Old Faves might be coming to a bit of a Rough Patch as far as sales are concerned. Especially with the movement for A Living Minimum Wage going and Healthier Lifestyles going on Simultaneously.

So what do you Guys and Gals Think? Have we had enough of The Golden Arches? Is it still Good Value? Are we getting to The Point where we maybe realize that Their Products might not Be Healthy?

Any Comments/Thoughts from my ATS Peers would be appreciated. Thanks for reading this and Peace Arjunanda.

Mods, I think I've put this Article in the right forum, please feel free to move this where you think is more appropriate. I also did a Search and have found nothing about this article on here, If I'm wrong, please feel free to delete this thread. Thanks Arjunanda

Investors who have gorged on shares of McDonald’s aren’t feeling so good. And according to both technical and fundamental indicators, it could get even worse for the fast-food giant.

McDonald’s saw its stock plunge this week, touching a 52-week low after McDonald’s reported a 3.7 percent decline in global same-store sales in August. The worst drop in a decade, the number reflected a massive drop in Asia/Pacific sales on the back of a serious meat safety scandal in China.

But the weakness wasn’t contained to Asia. In the U.S., McDonald’s same-store sales dropped 2.8 percent.

Currently the only component of the Dow Jones Industrial Average that’s negative for the past year, McDonald’s has dropped 10 percent over the past four months. But Steven Pytlar of Prime Executions says that it hasn’t bottomed out quite yet.


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Investors who have gorged on shares of McDonald’s aren’t feeling so good. And according to both technical and fundamental …
“The buyers are leaving this market, and sellers are taking control. People are looking for a way out,” he said. “It looks like it could continue to head lower.”
He said that the stock has broken its level of support, which indicates that no bottom is in sight.

“There was support at about $94 as it was consolidating there this year, and now it’s just slipped right through that,” he said.

From the fundamental side, Erin Gibbs S&P Capital IQ says the stock is not quite a good deal.

McDonald’s “currently offers about a 3 percent dividend yield, so for an income-producing strategy, it’s starting to look more attractive,” she said. “But we’d like to see it get closer to about 16 times earnings for it to be a real value.”

Currently, McDonald’s trades at a price-to-earnings ratio of nearly 17—so Gibbs sees more downside for the stock as well.

To see the full discussion on McDonald’s, with Gibbs on the fundamentals and Pytlar on the technicals, watch the above videofinance.yaho... o.com/blogs/talking-numbers/mcdonald-s-is-in-big-trouble—and-it-could-get-even-worse-021104348.html

Help is on the way. I'm going to get my $10 egg mcmuffin, and $5 coffee now.

I would not lose any sleep if all the fast food joints went out of business.

I suppose stock owners wouldn't be happy, though.

Yum, I'll contact The CEO and tell him to keep an eye on The Stock Price today and The Vacation House in The Hamptons might be safe after all Thanks for your reply, Arjunanda a reply to: ausername

Don't think I`d even take a leak in a Mickey D`s again. I always imagined they took dump truck loads of garbage, ground it up really good and then represented it as food with color and flavor additives. Its more than likely completely untrue and made up but the thought keeps me away. So much better quality food can be made at home.

Some businesses do go under and we should let them die with a bit of dignity rather than bail them out.

Yeah CC, I haven't personally eaten in one in Over Twenty Years. No Big Loss as far as I'm concerned. Peace Arjunanda a reply to: CoherentlyConfused

You don’t get to be a multi-billion dollar corporation without having contingency plans in place.

McDonald’s is the nation’s number one fast food chain, and they got there because they had a successful business plan – and implemented their plans well.

They may suffer slightly, and have to downsize though.

This living wage payment system will only hurt the employees of places like this, and people are too blinded by dollar signs to see the inevitable outcome of such an action.

I am usually able to go home for my lunch break but a couple weeks ago I didn't have time and decided to stop in at McD's to get a cheeseburger. There wasn't hardly anyone in there (mid-afternoon) but I still had to wait almost 8 minutes for my food. And when I dug in my fries were limp and the burger tasted like paste.

I decided never to visit there again. Half the time they can't even get my 'plain' cheeseburger order right and the employees could give a flying leap about friendliness. If they're going to raise minimum wage they need to step up their customer service and get the orders right!

I went to Maccy D's once on the way back from the shore as it was the only place open at that time, nearly £10 for a Big Mac meal and a 5 piece chicken select for the trouble and strife.

It was the worst thing I have ever eaten....and I've eaten burgers from the chippy van on the last day of festivals!

That plus the drive through encourages hordes of boy racers to drive down the shore and leave their wrappers all over the place.

Good riddance if it goes, maybe half the population of the world might lose a few pounds.

a reply to: CoherentlyConfused

Yeah, I wouldn't lose any sleep either.

The millions upon millions of folks now without employment might disagree...

And yes, we'd be losing sleep my friend!

No skin off my back if it goes away. I rarely if ever eat there anymore. I'd rather pay a few extra bucks for a GOOD burger and fries then eat that garbage.

You're Right on that point. From what I see of it, it certainly isn't good value anymore and some of The Stores I've looked into around here just seem to be a Hangout for Homeless (Not Nice Homeless, But Aggressive Panhandlers and Substance Abuse Types). It just seems to me to have taken a lot of The Family Thing out of it. Thanks for your reply and Namaste Arjunanda. a reply to: woogleuk

a reply to: arjunanda

If they go out of business, that's capitalism in action. Inferior products get run out of business.

Haters.

This living wage payment system will only hurt the employees of places like this, and people are too blinded by dollar signs to see the inevitable outcome of such an action.

The people who want to be able to eat a meal each day and have a roof over their head. Yeah, screw them.

originally posted by: CoherentlyConfused
I would not lose any sleep if all the fast food joints went out of business.

I suppose stock owners wouldn't be happy, though.

Well not out of meanness I say that life would go on without fast food. Well maybe not pizza.

And wow they obviously think they are honing in on a psyop by claiming the american icon Big Mac could move out of Joe Blows price range. WHATN WILL WE DO....it wrings its hands.

What will happen is folks will simply move their $ over to the better value. Home cooking, pizza shops ect. Pizza shops could absorb the hit from a higher wage requirement in most cases....without to significant rise in cost to dissuade customers. I would pay 5$ more for an already 15$ pizza but am not going to do the same for Big Mac. Hell I don't like the price now for what I get!!!

Could someone explain this to me:

In the USA, servers get paid what? About 5$ per hour? And the rest comes from tips, right?

So the food is cheap and the tips should be high.


Now, at McD the servers get no tips, obviously. Now how much do they earn? 5$/hr, too?


Because that would be a meanie, in my eyes. Working day in, day out - having to hear "you are a server, you earn by tips!", when all you get is your measly McD-earnings.

They employ a lot of people - world wide.
Through both company owned and franchised.

Lots of disgruntled entitled - sacked ones out there !

To be fair - this Corp. must be one of the most ' under the microscope ' big players out there !
I know, $$$ talks and BS walks !

But a reputation for " good clean family food " worth xxxx billion globally must be worth a lot of - in house controls.

I am in no way associated - nor affiliated with M'D's.

I just can not see this as being loss of control from such a huge global player !

It's hard to imagine. Any time I've gone in recently, no matter what time of day, they're packed with people and the drive through w i n d o w has a lineup .

And that's in northern Canada, where prices (and wages) are high

originally posted by: th3dudeabides
a reply to: arjunanda

If they go out of business, that's capitalism in action. Inferior products get run out of business.

Oh yea but capitalism isn't spoz to work or have input from the labor end don't you know! I mean Such&Such inc will negotiate with everybody.....suppliers, municipalities for tax breaks ect but negotiating with labor is something out of the question.

It does what its told! It puts the lotion on the skin or else it gets the hose again!