Everyone is familiar with the golden arches. The past few years, however, haven?t been altogether kind to McDonald?s Corporation. Shifts in consumer tastes have led to a disinterest in the type of ?fast food? McDonald?s has been famous for serving — yet at the same time, McDonald?s efforts to rebrand sections of its menu as ?healthy? have faced increasing competition from chains positioning themselves as upscale fast food, such as Chipotle?s and Five Guys.
So: Is McDonald?s still a good investment, or is the sun finally setting on the power of this global brand? Here?s what business valuation tools might tell you.
What Business Valuation Services Might Say About McDonald?s
According to Profit Confidential, not all is doom and gloom. McDonald?s has been steadily trading at record highs over the past year, reaching up to $124. And despite some of the naysaying, both Credit Suisse and Deutsche Bank agreed that McDonald?s stock was doing well and maintained a bullish outlook.
Thank Goodness for Egg McMuffins: The Stock?s Saving Grace
One of the reasons investors have been optimistic about McDonald?s future is its switch to breakfast. For years, consumers begged McDonald?s to serve their popular breakfast items later in the day. It was only in 2015 that CEO Steve Easterbrook agreed to begin launching 24-hour breakfasts at multiple U.S. stores as a test.
The McMuffin (and its associated breakfast pals) have been the company?s saving grace, helping to boost sales and profit even among a more competitive market than McDonald?s has ever previously faced. Subsequently, McDonald?s experienced a higher quarterly growth this past quarter than it has experienced anytime in the last four years. It?s a lot more than a simple burger shack these days.
The breakfast menu hasn?t been without contention, of course. McDonald?s deals with a number of franchisees, and the pushback against all day breakfast in previous years was due to the difficulty of implementation; having those items available day requires major shifts in layouts and planning.
Small Business Valuation Tools Can Tell You How You’d Fare
If you?re a small business — or a franchise owner — you may want to have a better idea of what your business is actually worth. What are similar companies selling for? How much would your business sell for? Can you use this estimated value to net future business loans from local banks? Business valuation experts can answer questions like these using small business valuation formulas. More can be found here. Find more on this topic here.