logo

Thoughts On McDonald's (MCD)
By: Brandon Rowley   Tuesday, October 20, 2009 3:29 PM

Vote for next session
The next market session will close:

McDonald's (MCD) proved to be, once again, one of the very few recession resistant stocks. McDonald's is a world-class company dominating the $157 billion fast food industry. Operating over 32,000 restaurants in 118 countries, McDonald's saw 2008 total sales of $70.7 billion, a 10% increase over 2007.

The recent moves in menu selections have proven successful with consumers enjoying the low-cost, healthier alternatives. The adoption of high-end, high margin coffee drinks was a brilliant move. McDonald's will produce the same level of consistency, as it does in every area, that Starbuck's (SBUX) prides itself on while charging a lower price. This should prove highly profitable and detrimental to the Starbucks empire.

McDonald's stock (MCD) boasts a 41% 10-year return trouncing the S&P's 12% loss. Investors switching to MCD at the October 2007 peak in the market would have kept all their money safe with modest volatility while market investors are still down over 30% from their highs. This is to be expected as consumers switch to lower-cost outings during tough economic times.

Hindsight is always 20/20 but for fully-invested mutual fund manager, MCD was the place to ride out this bear market. Shares performed performed brilliantly for the investor focused on capital preservation even offering a 3.5% yield for some cash flow on the side. This company and stock are firing on all cylinders and I would expect more of the same.

I must say I'm getting excited to see a sign saying 1 trillion served!

(0)
No Comments
Post Comment
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
   
 
 
 
 
   
 

The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
Advertisement
Popular Articles
Related Press Releases
Advertisement
Partner Center
Recent Articles by Brandon Rowley



Subscribe to Email Alerts rss feed or RSS feeds rss feed for articles from more than 500 contributors, press releases, SEC filings and full text news from more than four thousand sources.
Fundamental data is provided by Zacks Investment Research, market data is provided by AlphaTrade. , and Commentary and Press Releases provided by Quotemedia