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McDonald’s Buries Competition with Homemade Profits

McDonald’s Buries Competition with Homemade Profits (BusinessWeek)

Even as our dollars buy fewer groceries every year, Americans remain steadfastly devoted to their fast-food of choice: McDonalds (MCS). With each McDonald’s location averaging around $2.6 million in revenue last year, and number 2 Burger King averaging about $1.2 million, it appears that Mickey D is beating the pants off the competition in “Everything from marketing and site selection to product initiatives and franchisee location,” according to Nick Setyan, vice president of equity research at Wedbush Securities. More importantly for investors, these advantages are the type that appear immune to broader market actions or global disputes. Ultimately, no matter how much of Ukraine Vladimir Putin decides he wants, Americans seem likely to keep eating Big Macs.

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