Mcdonald's Corp

[valuehunter]

Mcd has a very impressive growth rate... and a good net margin of bout 30%
there was a warren buffett talk to students, he say he would rather buy coke than mcd, due to many reasons...
but from the current situation, seems mcd has much more growth potential than coke.

Yup, i've also seen the video several times. While MCD does offer good growth potential, esp in China (just look at YUM's recent results in China), one should not forget that KO has also been chugging along just fine. While the per capita consumption of KO products is roughly 675 servings in Mexico and 394 in the States, the corresponding numbers are 34 and 11 in China and India respectively. There is tremendous scope for growth in these two hugh markets.

The reason why the share price of KO has remained largely stagnant the past 10 years or so, i guess, is largely because it was grossly overpriced back then. However the business has not remained stagnant. In fact there is a consistent increment in volume sales, revenue and EPS during this period, so much so that its PE now has fallen below 20 (17 - 18 the last time i checked). Its most recent commendable results is a testament to its growth story and the resilience of its business in trying economic times. As a sidenote, it is also worth mentioning that every time someone buys a meal from MCD, most likely it will also come with a coke, sprite etc.

I could go on and on but i may be biased and this thread is for MCD in the first place. Just in the mood to share and ramble on. Forummers still need to conduct your own due diligence.