McDonald’s Corp does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned by the low current ratio along with the high PB ratio. The Enterprising Investor is concerned by the high level of debt relative to the current assets.
Company ProfileÂ (obtained fromÂ Google Finance):Â McDonaldâ€™s Corporation franchises and operates McDonaldâ€™s restaurants in the global restaurant industry. These restaurants serve menu at various price points providing value in 119 countries globally. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and developmental licensees and foreign affiliated markets under license […]
Chipotle Mexican Grill, Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings growth over the last ten years, and the poor dividend history, and the high PEmg and PB ratios.