Quote:
Originally Posted by GregWeld
I bailed on McDonalds (MCD) - as documented in this thread - and while we are not discussing particular stocks or what to buy... this name can be used as an example of "Fundamental change". What's that? That's a business that is experiencing sales declines or profit shrinkage or declines -- BECAUSE -- Because their business is positioned wrong. I think that is where MCD is right now. I say this because Chipotle Mexican Grill (CMG) just reported 17% sales INCREASE and a profit margin increase - vs - MCD reporting (now for a number of quarters in a row) another sales decline and weaker profit margins. These are both fast food retailers. One is growing - one is shrinking... I don't want to own companies that are shrinking. That's not to say they can't change and or react to market forces... but so far they don't seem to be able to find that magic bullet. There are better dividend payers if you just want to be paid to wait - and I want dividend AND growth (total return). This name doesn't seem to be in the mode to deliver that.... so that means those employees (you investment equals one employee per dollar invested) seem to be on vacation. I don't pay employees to be on vacation.... which means they need to be retrained (sold and buy something better).
Each investment is up to the individual... and I'm not saying anyone should buy sell or hold.... it's just a "way to look at an investment".
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I think American's are finally waking up to the fact that what you eat matters. Chipolte is a solid business model pushing hot buttons with where they source their components.