McDonald's Remains Unstoppable: Reasons for Its Continued Success
In an article published by The Motley Fool, titled "3 American Companies Set to Dominate the World", McDonald's (NYSE: MCD) has been highlighted as the top performing Dow stock of 2011. The fast-food giant is showing no signs of slowing down, particularly in China, where it is committed to duplicating its successful franchise model.
Amanda Alix, the author of the article, does not own shares in the companies mentioned. It is important to note that The Motley Fool has a disclosure policy, and the article mentions that the company owns shares of Darden Restaurants.
McDonald's is planning a television advertising campaign in China to promote its quality and is looking to export its franchising business model from the U.S. to China. The company aims to open up to 250 new restaurants in China this year and announced a partnership with CITIC Limited and the Carlyle Group to expand the brand, planning to open approximately 500 new restaurants there in 2021.
Despite harsh weather and economic conditions, McDonald's achieved 4% growth in Europe. The fast-food giant is also making waves in Japan, where it is introducing large hamburgers with high calorie counts. McDonald's believes these new menu items will reap oversized rewards in the Japanese market.
The success of McDonald's is not a recent phenomenon. During the Great Recession, the company's value menu offerings helped it outperform. In fact, McDonald's share price has climbed more than 31% from a year ago, slightly outperforming Yum! Brands (NYSE: YUM) year-over-year growth.
Moreover, McDonald's global same-store sales were 7.5% in February, a jump from 6.7% in January. This growth is a testament to the company's resilience and its ability to adapt to changing market conditions.
The Motley Fool's newsletter services have recommended buying shares of McDonald's and Yum! Brands, reflecting the confidence in these companies' potential for continued growth. As McDonald's continues to expand its presence in China, it is poised to dominate the global fast-food market for years to come.
