Giant McDonald’s Is Inventive, Nimble
McDonald's continues to nimbly outpace and outmaneuver the competition with top-line growth of 14% and a bottom line of 8.6% in the third quarter compared to last year. Same store sales were up 5 percent. What's the secret ingredient to the fast food giant's stellar growth that has its competitors relatively down in the dumps?
Motley Fooll's Navneet Bajaj reveals the answer.
McDonald's has the ability to see the world through others' eyes and identify their culture, needs, tastes, and preferences. The company keeps molding its menu across regions. These moves make the restaurants locally relevant. Be it the Big Mac in U.S., McAloo Tikki in India, or Samurai Pork Burger in Thailand, McDonald's always generates local interest. Prices are also kept reasonable to cater to a wide range of customers… It consistently thinks outside the box, experiments, fails, and learns from it.
Canada & Germany: Besides its ability to learn, the fast food giant is known for its strategic, methodical and collaborative approach in targeting new opportunities. Forbes reports that McDonald's is whipping up its coffee presence in Canada and Germany with its McCafe concept. The writer mentions that coffee has a high EBITDA margin.
McDonald’s has close to 1,400 restaurants in Canada, the majority of which would serve McCafe espresso beverages by the end of 2012...McDonald’s is also looking to double the coffee sales in Germany by 2015. The company will also spend $2.9 billion in 2012 to open 1300 new restaurants and upgrade its 2400 existing restaurants.
