McDonald's Continues To Rule The World

McDonald's MCD saw a 15% improvement in second-quarter profit today, led by its expansion of breakfast offerings and growth in China. Apparently, diners have been attracted to the McCafe line-up, including the new Frozen Strawberry Lemonade. Classic (for want of a better word) products like Chicken McNuggets and the Big Mac, continue to perform well. In addition, McDonald's fruit and maple oatmeal breakfast offerings are selling well, despite not being traditions fast food fare. The enormous fast food chain, based in Oak Brook, Ill, reported net income of $1.41 billion compared with $1.23 billion in the same quarter last year. “McDonald's ongoing momentum reflects our commitment to the customer,” chief executive Jim Skinner said in a statement, without cracking a smile. However, Skinner does have every right to smile. It would seem that the public's appetite for McDonald's knows no bounds. Not only are the ever popular Big Macs and Quarter Pounders selling well, but the oatmeal too. The company is so well branded now that they can stick the yellow “M” and the “Mc” prefix on anything, and it will be a success. ACTION ITEMS Bullish: Traders who believe that McDonald's will forge onwards with it's quest for world domination might want to consider the following: June sales at restaurants open at least 13 months were stronger than analysts expected in each of the world's biggest hamburger chain's operating units. Bearish: Traders who believe that the fast food fad is over, or that people will go elsewhere for their fast food, might want to consider the folowing: McDonald's says price increases in at-home food gives it the opportunity to increase prices further.