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Non-Tech : McDonalds (MCD)
MCD 309.79-0.4%3:59 PM EST

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To: james paterson who wrote (23)10/21/1997 5:48:00 AM
From: Fredric D. Bellamy  Read Replies (1) of 288
 
Here is a quote from 10-20-97 Lunchtime News on The Motley Fool website expressing a similarly bullish opinion:

"How many owned and operated stores does McDonald's have? 4658, and the majority of them are outside the U.S. By setting these stores on a good footing and then selling them upon maturity, the company can either fund new markets expansion (growing worldwide mind-share) or it can send that cash back to shareholders."

The article compared MCD's brand strength worldwide to Coca Cola's. The writer accordingly suggested that one can be confident that people around the world will still be buying Big Macs and MCD fries ten years from now. This suggestion dovetails with your point that even a deflationary period would not necessarily wipe out MCD's sales.

I agree with your observation that, in all likelihood, "most of the bad news is out." It seems that hardly a week has gone by the last few months when I haven't seen yet another article discussing MCD's woes. The business press has been beating the dead horse of MCD's diminished relative popularity in the US for so long that perhaps MCD bottomed. Still, the upgrade was nice to see.
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