McDonald’s investment strategy of trying new, innovative ideas by slightly tweaking its business model to the local market has been extremely successful.
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New York, NY (PRWEB) March 16, 2012
The investment strategy of McDonald’s Corporation to continually innovate has been highly successful in driving corporate earnings year after year, according to Sasha Cekerevac, contributor to popular financial e-newsletter Profit Confidential. Cekerevac highlights the latest innovations of McDonald’s in his recent article, Why McDonald’s Is Brilliant.
Cekerevac notes that continued innovation has driven the stock price of McDonald’s from $13.00 in 2003, to approximately $100.00 today, with a dividend yield of 2.78%.
“A recent example is in France where McDonald’s is coming out with a baguette-based burger, called the ‘McBaguette,’” says Cekerevac. “In 14 European countries alone, McDonald’s has 20 different menus that have been tweaked slightly to better fit in with the local market.”
Cekerevac believes that this investment strategy not only adds a local flavor, but it also drives corporate earnings and margins, as these products are being charged at a slight premium to McDonald’s regular menu.
“McDonald’s investment strategy of trying new, innovative ideas by slightly tweaking its business model to the local market has been extremely successful,” says Cekerevac.
Investing in blue-chips is all about longevity, and Cekerevac notes that innovation is the only way to grow corporate earnings. “A solid, long-term investment strategy needs to be in place for share prices to continue to go up.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.