Thursday, October 8, 2009

One has to wonder about the growth potential of McDonalds

In this article you have to wonder about the growth potential of MCD. In light of reading the article's stating that the greatest distance you will drive to get to a McDonald's in the continental US is roughly 145 miles, I realized that in the event I am in the 'Middleofnoweheresouthdakota', I am probably less than 2 hours from squelching a Big Mac attack. While the company can certainly grow in other areas, such as China or even delve into other businesses, a P/E of ~15 and a PEG (on Yahoo Finance) of 1.62 are thought provoking as a mental exercise, but cheap my no means (when compared to other food chains, especially).

Disclosure: I own no shares of MCD. This is not investment advice, only something that I thought interesting enough to pass on.

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