McDonalds (MCD) Message Board

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Non-Tech : McDonalds (MCD)

MCD 311.02

+0.8%

Dec 5 9:30 AM EST

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To: Fredric D. Bellamy who wrote (28)	10/26/1997 1:49:00 AM
From: Andrew	Read Replies (1) of 288

Fredric, I know what you mean about the media treatment. People are lining up to take potshots at this company. If I hear one more time about customers being angry that they could only get the 55 cent Big Mac if they bought full price fries and drink, I'm gonna lose all faith in media objectivity. SO WHAT!! Notice also that these negative articles never fail to ignore the fact that MOSTof MCD's profits are now being made overseas. But hey, it's that kind of tunnel vision that gives us bargains to choose from - and proves what a joke the efficient market theory is. But yeah, it would be nice "double play" if they can turn around the domestic business. And I must confess, I LOVE McDonald's food! Re: Warren Buffett - he doesn't take a large non-arbitrage position in any company whose management he doesn't have a great deal of personal and professional respect for. He hangs out with the CEO's of these companies. And in my opinion, there's no better judge of management capability and integrity than Mr. Buffett. If he's bought in, the last thing I worry about is competent management. It's a given. Another thing about the domestic business that is portrayed one-sidedly: everyone talks about same-store sales decreases because of saturation. But nobody realizes that what they are trying to do is maximize per-capita business in each town. Adding a store down the street may decrease the existing store's revenues, but it increases total revenues and earnings. I'll admit that franchisee irritation is difficult to quantify, but the point is, decreasing same-store sales in New York is not the same thing as decreasing sales in New York. Quite the opposite. Wish I had noticed Dairy Queen before... Andrew

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