How McDonald’s 4-Bagged

Motley Fool:

The year is 2003, and the bear market is in full force. You’re eyeing McDonald’s stock, which has plummeted from $45 per share to around $15 per share, a decade-low. Anybody who bought shares in early 2003 would’ve tripled or quadrupled their money. Using only information prior to early 2003, we try to reverse-engineer the situation to find the clues that Mickey D’s shares were a screaming buy.

Mickey D’s moat
Although selling hamburgers and french fries doesn’t sound like the greatest business in the world, McDonald’s nonetheless boasts a very secure moat. That’s because the company makes the bulk of its income from franchising and real estate.

That’s a HUGE difference from operating a company-owned restaurant. Why? Read on…