This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Does the World Need More McDonalds?

But, hey, in Portland they use loads of processed tofu to prepare meals, serve craft beer and compost, so it's all good! I'd love to see somebody compare the "carbon footprint" between the average Portlander and Manhattanite. But, digress, I do ...

How does this relate to McDonald's? It does, big time, particularly if you're conflicted about making MCD an investment because of some of the social stigma attached to the brand and large fast food chains in general. (Large is the keyword here because, you don't see activists talking down In-N-Out or Five Guys much).

TheStreet's Keris Alison Lahiff filled us in Friday on MCD's expansion plans:
(MCD) plans to add at least 1,500 new locations to its total 35,000 over fiscal 2014, 50% more than over 2012. At the company's investor meeting on Thursday, senior management announced 2014 capital expenditure of $2.9 billion to $3 billion, providing for the openings of between 1,500 and 1,600 new restaurants and 1,000 renovations.

Here's one recent renovation -- with a really funny temporary drive-thru setup -- I spotted a couple months' back in West Los Angeles:

Expect opposition. Once again it will be as futile as it is misguided.

On its performance as investment alone, McDonald's has done more for neighborhoods and the people who live in them than your run-of-the-mill local city or county supervisor who makes it his life's mission to rail against "formula chain stores" even as issues ranging from homelessness to potholes continue to get worse.

MCD is up more than 29,000% if you max out the chart; 77% over five years and 16% over the last 365 days. Other than provide him or her with your unconditional love and support, there's probably nothing better you could have done -- or could do going forward -- than buy your kid a share (or more) of MCD. But, of course, many hypocrites from places such as San Francisco and Portland will brand you, the smart shareholder, as the bad guy. As part of the problem, not their self-guided, top-down, holier-than-thou solution.

Anyway, if you're angry with me after reading this, watch the video. If you watched the video and are still angry, I make no apologies. I have been around the block where this issue resides a million times -- passionately and on many sides. If more McDonalds means more investors creating wealthy estates, then, yes, we absolutely do need 1,500 more of them.

-- Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MCD $129.77 1.10%
AAPL $94.07 -1.20%
FB $117.54 0.09%
GOOG $696.62 0.62%
TSLA $223.52 -3.80%


Chart of I:DJI
DOW 17,659.34 -91.57 -0.52%
S&P 500 2,048.00 -15.37 -0.74%
NASDAQ 4,718.88 -44.3440 -0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs