GSquared CIO praises McDonald's Corporation (MCD.US): Winning the battle of cost-effectiveness by "extremely understanding consumers", while Chipotle (CMG.US) is retreating step by step.

GSquared's Chief Investment Officer Victoria Green stated that McDonald's Corporation (MCD.US) is currently outperforming its competitors in the fast-food industry with its precise pricing strategy and high-density promotional activities, while the "affordable luxury" Chipotle (CMG.US) is clearly falling behind in this round of value-oriented consumption trend. She said that McDonald's Corporation's deep understanding of its customer base is leading to sustained growth in same-store sales, while competitors like Chipotle are struggling to connect with value-sensitive consumers. Green bluntly said in an interview, "The customers Chipotle is losing are going to McDonald's Corporation." She pointed out the distinct differences in pricing strategies between the two fast food chains, stating that Chipotle has explicitly stated that it will not offer $1 low-priced items, while McDonald's Corporation continues to attract customers with $5, $8 combos, and limited-time items like SnackWrap. "Extremely consumer-centric" Green highly praised McDonald's Corporation's operational efficiency and franchisee support system, stating that its management is "excellent at promotions, support, and expansion," with steady growth in same-store sales, and the goal of 50,000 stores is transitioning from blueprint to reality. She specifically emphasized McDonald's Corporation's meticulous work on its App membership system: "They understand their customer base extremely well, knowing when to price, when to promote, and when to raise prices." Green stated that McDonald's Corporation's business structure, including its self-owned property asset model, is "ingenious." Equal balance of chicken and beef products, strong blue-chip representative In terms of product structure, Green revealed that McDonald's Corporation has achieved a balanced layout with approximately equal distribution of chicken and beef products. Despite cost pressures, she expects the management to release optimistic signals based on solid consumer insights and execution capabilities. Green compares McDonald's Corporation to Walmart Inc. in the food industry, as a blue-chip representative of "value consumption." Even with extreme weather disruptions in January, McDonald's Corporation's stock price remains strong, illustrating market confidence in its strategic resilience.