July 26, 2014

Otto & Sons, China, and the Secret REIT

There's been unfortunate news out of China for McDonald's. An OSI subsidiary had 
some food safety problems. Competitor YUM also uses OSI to a limited degree and
immediately dropped them as a vendor. The media has been trying to make a big 
deal out of YUM bailing on OSI but that McDonald's is sticking with them.

McDonald's can't dump OSI! That would be a huge disruption to the McDonald's 
system. And ... OSI is one of the owners of System Capital Corp.

So, if you're a McDonald's Operator, OSI might be one of your landlords. They're not 
going any place.
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