McDonald’s Corporation (MCD): A Leader Willing To Change

And that points to the big difference between Chipotle and McDonald’s or Wendy’s. Chipotle’s entire concept is new. It is in a new quality range, too. So, the menu size comparison doesn’t make complete sense. Chipotle and its fast-casual brethren are like the Cabbage Patch Dolls of the food industry right now. Everyone wants to try the new thing.

However, it is interesting that McDonald’s divested Chipotle just before the burger joint’s menu expansion began. It’s also notable for Wendy’s shareholders that the fast-casual concepts have forced it to step up its game. It’s in the midst of a store revamp to help change its image and move it closer to the fast-casual space. Early same store sales results suggest that the moves may be gaining traction. That might interest more aggressive investors looking for a turnaround play.

Back to the Burger Giant

So, the jury is out on the issue of the size of McDonald’s Corporation (NYSE:MCD)’s menu. What should make investors happy about the proposed menu tinkering, however, is that, despite the current headwinds, McDonald’s is working to keep its menu fresh. For example, even as it talks about axing some menu items, it is bringing out new ones like egg white breakfast sandwiches.

And don’t forget the company’s scale and global reach. In fact, market share is the name of the game in developed markets, not growth, for a company the size of McDonald’s. That’s a tough game, so rough patches should be expected. Growth in emerging markets is more likely to lead McDonald’s growth and earnings increases.

With a P/E less than half Chipotle’s and an around 3% dividend yield, McDonald’s is a solid option for income investors and those with more conservative investing tastes. Don’t look at the menu issue as a negative because it just means the company’s leaders are still working hard to please customers.

The article A Leader Willing To Change originally appeared on Fool.com and is written by Reuben Brewer.

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