Hedgeye CEO Keith McCullough is adding McDonald's (MCD) to the short side of Investing Ideas. Below is a brief note.
Since I covered all my US Equity Shorts on red last week, now I can start a new week with a fresh slate of SELL ideas. Between here and the top-end of my SPY Risk Range, I'll have plenty of them.
Here's a summary recap from Restaurants analyst Howard Penney's recent Institutional Research presentation on McDonalds (MCD):
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For decades the investment case for MCD that it was the largest landlord in the U.S.! It leases the land, the buildings, or both on a significant markup to over 13,000 restaurants in the U.S. and a good portion of the 36,000 restaurants internationally. Today the investment case for MCD is that it's the largest landlord in the world, and nobody can pay the rent! Not to mention that 15% of the company's units are closed globally, with the rest of the system operating on limited hours. |
Sell the bounce to lower-highs,
KM
