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Company: McDonald's (MCD)
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edit Association with unhealthy food and negative health impacts damages brand

McDonald's is a high profile target within the fast food industry and similar lawsuits to the one filed in 2003 (claiming that McDonald's was responsible for childhood obesity and which has not been fully resolved) could further damage the company's image.

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edit Commodity Prices

MCD management yesterday said they would change the Dollar Menu. One of the reason for change is commodity prices. Management also changed their guidance for Beef and Chicken prices in US and Europe and the later guidance is obviously higher than the first one.

It should be able to manage better than its competitors.

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edit Lots of competition in the quick service restaurant industry

The restaurant industry, and the quick service restaurant sub-segment in particular, is extremely competitive. McDonald's has very little power to increase the prices of its products given that many other competitors already offer attractive value menus.

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edit Another Mad Cow scare on the horizon?

Beef continues to generate the majority of McDonald's revenues, and if another mad cow scare were to arise, the company's sales would be significantly affect

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