Check out the nine and a half minute mark of this charmingly clunky video from Peter Lynch. It contains the following quote:
“McDonald’s earnings have gone up, I think, more than 80 fold over the last thirty years. The stock has gone up 100 fold. What made McDonald’s earnings continue to grow? If they had just stuck with a cheap cheeseburger and a cheap hamburger at lunch, they probably would have run into earnings problems ten, fifteen years ago. But they expanded their menu, they kept their costs low, they added breakfast, they went overseas. Every day, they add two or three more restaurants. People thought there was no room for more McDonalds’ five, ten, fifteen years ago. They were wrong. If they had done the research that said, well, there’s a couple hundred countries out there. There’s lots of places to grow.”
In the 1990s, business magazines were convinced … Read the rest of this article!