Why McDonald’s Corporation (MCD) Should Acquire Chipotle Mexican Grill, Inc. (CMG)?

McDonald’s Corporation (NYSE:MCD)’ sales have not been up to mark for quite some time. Though the company has had growth in other parts of the world, its U.S. sales are just not growing. This year even growth in other parts of the world suffered for McDonald’s Corporation (NYSE:MCD) owing to the expired meat scandal the company faced in China. In the U.S., the obesity concerns have made food from McDonald’s Corporation (NYSE:MCD) a strict no-no for many. Doug McIntyre, Editor of 24/7 Wall Street, feels in such times inorganic growth is the most viable option for McDonald’s Corporation (NYSE:MCD) to grow. He discussed why McDonald’s Corporation (NYSE:MCD) should by Chipotle Mexican Grill, Inc. (NYSE:CMG) back on CNBC, recently.

McDonald's Corporation (MCD)

“McDonald’s Corporation (NYSE:MCD) as you know has a tremendous balance sheet and generates so much cash that it has been buying back its own stock  and issuing higher and higher dividends. So, they have the capital to be able to do it,” McIntyre said.

McIntyre feels that if McDonald’s Corporation (NYSE:MCD) has to buy Chipotle Mexican Grill, Inc. (NYSE:CMG), it will need to shell out at least $25 to $30 billion on the acquisition based on the current market cap of the company. He believes that Chipotle Mexican Grill, Inc. (NYSE:CMG) is an ideal target for McDonald’s Corporation (NYSE:MCD) as not only does it have a large presence across the U.S., but it is also one of the remaining fastest growing companies in the restaurant business.

McIntyre thinks that if Subway would have been a public company or if it would have been open for a sale, it would have been a ‘holy grail’ for McDonald’s Corporation (NYSE:MCD) in terms of acquisition. He believes that an acquisition can benefit McDonald’s Corporation (NYSE:MCD) only if it’s a large company like Chipotle Mexican Grill, Inc. (NYSE:CMG) or Subway, as smaller companies don’t have the necessary size to compliment that of McDonald’s Corporation (NYSE:MCD);s.

Disclosure: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!