Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Is McDonald’s in the Death Spiral?

The Death Spiral

The Incredibly Shrinking McDonald’s

By my calculations, McDonald’s annual revenue fell by $5.285 billion between December 2013 and December 2017. McDonald’s reported $28.105 billion in revenues on 31 December 2013, and $22.82 billion in revenues on New Year’s Eve 2017.

The implications are obvious McDonald’s is suffering permanent revenue shrinkage that is increasing dramatically. If McDonald’s 2018 financial performance is a repeat of 2017, revenues might drop by 14% or more.

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Opportunities

The Incredibly Shrinking McDonald’s

McDonald’s is a stock to watch, buy MCD if it drops below $100 a share, because there’s a great dividend and a lot of future income potential here. Investors should pounce if the company can increase its’ quality and harness new technologies.

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The Death Spiral

McDonald’s, does Fast Food Still Payoff for Investors?

The problem at McDonald’s is that its revenues are in freefall; and have been for some time. Over the two years between June 2014 and June 2016, revenues under the Golden Archers fell by $3.17 billion, or by around 11%. McDonald’s reported revenues of $28.3 billion in June 2014 and $25.13 billion in June 2016.

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