MCDONALD’S: Gross Margin at a 10 Year High. Here’s Why.

How can McDonald’s make money selling 99-cent burgers? That’s what Eric Kuang at Seeking Alpha wondered.  Then Kuang, founder of GuruFocus Capital Management, LLC., answered his own question… reinforced with some compelling stats showing why McDonald’s is thriving while others are struggling:
Well, maybe the company doesn’t make money off the 99-Cent burgers. Instead, the 99-Cent burgers are its symbols for value to attract customers. Once the customers are in the store or in the drive-thru line, they are bound to buy things other than 99-Cent burgers. They make money off those menu items, such as big Macs, hash browns, soft …read more