While McDonald’s has been a formidable winner for lots of investors, it has also struggled in the recent past. After becoming the ultimate franchise in 2011, the company has had its fair share of woes. It has not been easy to maintain the steady growth, especially in the wake of a sluggish economy in North America and Europe. Besides, there has been immense pressure from the broad array of competitors. After recording significant drop recently, the star is beginning to shine once again. Yet, there are lots of positive indicators that shed light on the future prospects of this world famous company. In fact, its shares have started to improve, gaining over 9% in less than a year and beating everyone else in the fast food industry. Find out whether these positive indicators have restored the former glory and whether investing in the fast-food king is a good idea:
McDonald’s owns over 35,000 outlets in over 120 countries. Besides, this company serves over 69 million customers on a daily basis. The key to success has been their unique franchise model, which allows McDonald’s to front reduce its total working capital. In fact, over 80% of these restaurants are managed under a franchise system. McDonald’s is an inventive company with some of the world’s leading brands such as Egg McMuffin and Big Mac.
2. Quality Products
Producing high-quality products is a huge priority at this company. Since finding new avenues of expansion in the United States is a daunting task, the company decided to expand overseas and take a significant share of the market away from its competitors. Such a company needs to diversify its products to meet the unique needs of a wide array of people across the globe. As such, the company has introduced some new products like Cheddar Bacon, the Grilled Onion, Cheddar burger, and Onion burger. By 2013, McDonald’s had a vast array of new products that allowed it to make millions of dollars every day.
3. Excellence in the Stock market
In 2012, the fast food king offered over $5.5 billion to its global shareholders through share repurchases and dividends. Since then, McDonald’s has continued to increase its dividends and shares consistently. With millions of investors across the globe looking for a good investment vehicle, McDonald’s offers plenty of opportunities to do so. Since you will not have to worry about building your brands, you can take advantage of its global brand recognition. Harnessing the global brand recognition in your franchise means that you can get up and running without spending your fortune on a marketing campaign.
1. Health Movement
While McDonald’s has always attempted to develop a wide range of nutritious products on its menu, most of the products have plenty of calories. Following the rising cases of obesity, there is immense pressure to introduce some more nutritious products in the menu. While the authorities are putting the pressure on the fast food companies, the consumers seem to have developed a sweet tooth already.
Also, Macdonald’s is unable to meet the global demand for its products. If you have the passion for venturing into this business and the resources to bridge the gap, Macdonald’s has plenty of lucrative opportunities for you.