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Entrepreneur's Journal: Fundamental business lessons from McDonald's Ray Kroc

Ray Kroc did not start McDonald's (NYSE: MCD). But he was the one that had the vision and energy to turn it into a global powerhouse.

Back in 1977, Kroc wrote a book about his story, called Grinding It Out: The Making of McDonald's. The title is appropriate. You see, he did not get involved in McDonald's until he was 52 (in 1954).

What I like about Kroc's book is that he has some simple advice for building a successful business. And, it's always a good idea to look at the fundamentals. So, here are some of the takeaways:

Continue reading Entrepreneur's Journal: Fundamental business lessons from McDonald's Ray Kroc

Chipotle Mexican Grill serving up hot results

Chipotle Mexican Grill Inc (NYSE: CMG) reported outstanding results again last night, and the fast-food chain rallied big in after-hours trading, up as much as $6. This followed a similar type of moving in the previous day's trading. Here are some of the highlights:
  • Diluted EPS increased 81.8% to $0.60
  • Revenue increased 33.9% to $274.3 million
  • Comparable restaurant sales increased 11.6% -- Wow!
  • Restaurant level operating margins increased 150 basis points to 23.2% -- Massive!
  • Net income increased 85.1% to $20.0 million -- Not too shabby!
Chipotle, which was scooped up by McDonald's Corporation (NYSE: MCD) at its earlier stages of development, looks like it's going to be the McDonald's of the future. This is comparable to investing in Ray Kroc when few of his hamburger joints populated the country. Buy Chipotle and go along for the ride.

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Last updated: February 13, 2012: 06:50 PM

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