Monday, March 10, 2014

Stocks and McDonald's

Stocks are off a bit today. I think they got spooked by the report from McDonald's that sales were off 1.4%. That makes sales down four months in a row at a bellwether company. Have American's tired of MacDonald's, or are the strapped for cash and can't afford to go out for food? I think it is a bit of both. My family and I average about 1 visit a month to MacDonald's. We go because my kids like the chicken nuggets (no matter what may be in them). We have several McDonald's in town and they all seem to be doing well, though maybe not as busy as before. We have also had a couple of new fast food alternatives open in town recently. One is Chipotle, which is doing a brisk business. The other is a high end burger place called The Habit, which is really busy. I think people have less money to spend and more options. So sales would be down at McDonald's. I also think the trend is working against McDonald's favor in that people are looking for healthier and affordable alternatives. Is McDonald's in trouble? I don't think so, but they will not be growing as they used to.

What do you think?