1.03.2008

McDonalds and the food fascists

Lovin' it all over

Excerpts:

McDonald's exemplifies the role of small businesses in Americans' upward mobility. The company is largely a confederation of small businesses: 85 percent of its U.S. restaurants — average annual sales, $2.2 million — are owned by franchisees. McDonald's has made more millionaires, and especially black and Hispanic millionaires, than any other economic entity ever, anywhere.

McDonald's has 14,000 restaurants in America, another 17,000 in 117 other countries. The company will add another 1,000 in 2008, more than 90 percent of them abroad. Such is the power of the McDonald's brand, 48 percent of the people of India were aware of McDonald's before it opened its first restaurant on the subcontinent.


Skinner's job is to maximize shareholder value. Shareholders should be pleased. The value of their stock has more than doubled during his three-year tenure. McDonald's stock will have either the best or second-best (if second, only to Merck & Co.) gain among the Dow industrials this year.


The food fascists are not pleased. Pursing their lips and waxing censorious at the mere mention of McDonald's, they blame it for fat people. But although it might seem peculiar to cite McDonald's customers as evidence of Americans' increasing health consciousness, consider this: Red meat has become suspect and McDonald's now sells as much chicken as beef — 150 percent more chicken in dollar volume than just five years ago.


Do the arithmetic, says Skinner. Americans eat 90 meals a month. The average American, who has 900,000 restaurants to choose from, eats three of those meals at McDonald's. Surely the other 87 meals are more of a problem. Even McDonald's core customers, who eat there 50 times a year, consume more than 1,000 meals elsewhere.


Comment: We eat at McDonalds about 5 times a year - typically on road trips. The point is that while some blame McDonalds for America's obesity epidemic, McDonalds does provide healthy choices and should not be condemned for the poor choices some make.

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