McDonald’s Corporation (MCD): A Metric in Its Favor

What now?

Can Chipotle Mexican Grill continue to persuade people to pay a premium for burritos with integrity?  I don’t think it is a sure thing by any stretch of the imagination.  A few months back now, David Einhorn decided to short Chipotle due to competition from Taco Bell’s Cantina Bell.  Many argue that Einhorn was right and that Cantina Bell did steal customers away from Chipotle.  In any case it does highlight Chipotle’s vulnerability.

But McDonald’s Corporation (NYSE:MCD) is another story.  With one of the highest operating margins around, management has a pretty effective tool at their disposal. They have a lot more flexibility when it comes to pricing.  Some call this pricing power.

For this reason, among others, McDonald’s appears to be positioned to continue to be a dominant force in fast food for years to come.

The article A Metric in McDonald’s Favor originally appeared on Fool.com.

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