Is This Fast Food Giant A Safe Bet?

Founded in 1940, McDonald’s (MCD) franchises and operates restaurants in the global restaurant industry. The company operates approximately 34,000 restaurants in 120 countries around the world. Recently, most of the company’s growth efforts has been concentrated abroad, and international growth has been booming. The Oak Brook, Ill.-based company highlights the power of a brand that customizes its offering to local tastes in individual countries. This is its key success for increasing income and sales in Europe, despite the euro crisis and a troubled economy, 40% of total sales are from Europe.

Growth Opportunities

MCD has a relatively small market in India, so the beef-centric fast-food chain plans to open vegetarian-only restaurants next year. This is a totally new strategy for the company, signaling a growing effort for expansion in India (where the majority of people don’t eat beef). McDonald’s is also venturing into the coffee market with the expansion of McCafe designed to appeal to coffee lovers with tight budgets, a common pattern in recessions.

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