These Fast Food Companies Are Flying Into New Markets
McDonalds (NYSE:MCD) is known the world-over for its deliciously greasy sources of sustenance. The flagship of the golden arches continues to branch out on new business ventures with sights set on rapidly expanding emerging markets. Ever heard of “los acros dorados?”
Language barrier aside, the name is acquiring new associations in the business world. Arcos Dorados Holdings (ARCO), a company that recently purchased franchising rights from McDonald’s (NYSE:MCD) to some 1,800 fast-food chain locations in South America, is set for a growth spurt as Latin American’s are developing a sweet tooth for “Big Macs.” The new owners of ARCO went public on the NYSE (NYSE:NYX) in April, and are projecting crazy growth in customer demand. “According to Euromonitor, between 2010 and 2014 the industry is expected to grow 19% in Argentina, 27% in Brazil (NYSE:EWZ), 26% in Chile and 31% in Colombia (from Investors.com).”
More from “investors” on the company’s financials; “Arcos Dorados has been expanding. Since it commenced operations in 2007, annual sales have climbed 46% to just over $3 billion last year. In the first quarter of this year, the company opened a net 69 new restaurants, helping goose sales by 23% over the prior year to $826.7 million. Sales in existing restaurants also rose, by 12.5%. Profit climbed 50% to 15 cents a share.”
Golden Arches aren’t the only brand-name fast food logo that has mouth’s in emerging markets salivating, take a look at Chipotle Mexican Grill (NYSE:CMG). The company has worked tirelessly over the past three years to make itself not just a fast-food chain, but a healthy one. Chipotle calls their strategy, “food with integrity.” How does Chipotle deliver on this promise? “In 2010, Chipotle used more than 75 million pounds of naturally raised meat — raised humanely on a purely vegetarian diet, with no antibiotics.” (Motleyfool.)
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