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 Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

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

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How 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

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!