4 ms·
Worth clicking through to the actual filing where you can see the evidence McDonalds presents, which I personally find very compelling. Also worth noting that
by CSMastermind 2y ago
Worth clicking through to the actual filing where you can see the evidence McDonalds presents, which I personally find very compelling.
Also worth noting that assuming I'm reading this correctly it doesn't just impact McDonalds but everyone who has bought beef since 2015.
I do wonder at what point does McDonalds vertically integrate and process the beef themselves.
- lotsofpulp 2y ago> I do wonder at what point does McDonalds vertically integrate and process the beef themselves. Never. McDonalds probably wants to avoid getting into a low profit margin, high liability business: https://www.macrotrends.net/stocks/charts/TSN/tyson-foods/profit-margins https://www.macrotrends.net/stocks/charts/TSN/tyson-foods/pr... https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/profit-margins https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/prof... Look at the difference in trajectory and amount of profit margin and market cap (<5% and $20B versus 30%+ and $217B). Tyson deals with the laborious and dirty work, as do McDonald’s franchisees. McDonald’s probably likes where it is, collecting royalties for “quality” control and real estate appreciation.
- Aloha 2y agoInterestingly enough, In-N-Out does do their own beef processing, they take whole sides of beef, and turn them into patties.