From 1981 through 2017, McDonald’s (MCD) stock returned approximately 14% annually. Someone who witnessed Ray Kroc’s visionary leadership in rolling locations across the country and chose to reinvest $100,000 in the enterprise that was already by that time the largest fast food empire in the United States would have ended up with a present day value of over $20,000,000 generating in the neighborhood of $500,000 in annual dividends.
There are no other fast food businesses that generated returns anywhere within hailing distance of that. Heck, there are only three or four publicly traded fast food businesses that have a record of making profits that stretches back more than thirty years.
This raises an important question for investors: What is it that Ray Kroc was able to do that was so superior to what every other fast food competitor was able to accomplish? Most people, in answering this question, focus on … Read the rest of this article!