Tags: Ackman | Fast | Food | Shares

Bill Ackman: Buy Fast Food Shares

Monday, 12 Mar 2012 07:02 AM

Pershing Square hedge fund CEO Bill Ackman has a big appetite for fast food stocks.

“We’ve been a big investor in the (fast food chains) space,” Ackman told CNBC. "We owned McDonald’s for a long period of time, and have tremendous respect for what they've accomplished," he said.

“I like a businesses when you charge a royalty on other people’s sales,” says Ackman. “Their business is collecting 4 percent of the gross revenues of 33,000 boxes around the world, and another 8 or 9 percent in rent,” he said.

Editor's Note:Wall Street Whistleblower Warns of Meltdown, See His Uncensored Interview

"Every time they sell a Coke, McDonald's makes 14 cents. It’s better than Coca Cola.”

Ackman’s 2005 McDonald’s investment almost doubled by the time he sold it for $56 a share.

Ackman also bought Wendy’s in 2005, which he says also paid off after he managed to convince the company to spin off Tim Horton’s Canadian coffee and donut chain.


As to his investment in Borders Books — which Ackman describes as “the worst I ever made,” Ackman notes “I think the publishers have had a tough go largely because Amazon has taken so much share in the business.”

“With the Kindle they set a price point of, you know, $999 which they tried to enforce and I think that puts a lot of pressure on the publisher. I think it’s important that there is competition for Amazon otherwise they’ll have the whole market and they’ll raise prices.”

According to the Business Standard, McDonald's reported global February sales that missed Wall Street's target as analysts underestimated what effect Europe's harsh winter and economic upheaval would have on sales.

Editor's Note: Wall Street Whistleblower Warns of Meltdown, See His Uncensored Interview


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2012-02-12
Monday, 12 Mar 2012 07:02 AM
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