Key insights
- The article discusses McDonald's recent stock underperformance and proposes a radical pivot to AI, suggesting the company leverage its land holdings to build data centers and charge franchise fees for proprietary AI technology. While the author believes this could significantly boost the stock, it's a speculative and unconventional idea with no immediate bearing on current market trends or McDonald's core business operations.
Over the past 1 year , McDonald's has faced one of its toughest structural and financial stretches in recent history. The stock has experienced a steady, significant downward trajectory, eroding more than half its value by 10%!. As an investor i am extremely disappointed in the performance as would any other fellow investor.
My question is why does McDonald's still operate its legacy food business?!?
we are currently in an era where company's are making way more money from AI hence why not just simply pivot into AI?
McDonald's already owns multiple plots of land around the world therefore each plot can be converted into a data centre to power AI for the big tech company's. Plus they can charge a franchise fee since the data centres will operate on Proprietary McDonald's technology.
I understand it may take a couple of months to get all the building done but once the AI pivot occurs we can see the stock finally go as high as $1000 similar to nvidia and allbirds as a case study.
I would like to get some feedback from any fellow shareholders who feel this strategy could save the company.