McDonald's and McCafe

Recently, McDonald's has opened many McCafe over the island. The new cafe mainly situated at the same location as the fast food restaurant. I was surprised at the setup and the quality of coffee it offers.

For the past few decades, McDonald's has grown quite steadily, expanding from its home to almost every part of the world by selling burger. With its efficient operating model and recognized franchise, it is able to earn good money and grow the business. By selling burger and soft drink, it is able to command a operating margin of 17% (from Google finance)

When consumer health consciousness picked up, it starts to sell green tea, corn and apple. When the growth stalled, it starts the coffee venture to capture wider market. It was once viewed by analyst as a value property play since its restaurants are all in very good location.

I think this shows that it is important to invest in business. Yes, business, not just stock. Pick a company which has unique competitive advantage, good product, good management and discounted price. In the long run, you would definitely win.