4-Star Stocks Poised to Pop: McDonald's

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fast-food giant McDonald's (NYS: MCD) has earned a respected four-star ranking.

With that in mind, let's take a closer look at McDonald's and see what CAPS investors are saying about the stock right now.

McDonald's facts

Headquarters (founded)Oak Brook, Ill. (1948)
Market Cap$100.2 billion
IndustryRestaurants
Trailing-12-Month Revenue$27.0 billion
ManagementCEO James Skinner (since 2004)
COO Donald Thompson (since 2010)
Return on Equity (average, past 3 years)35.2%
Cash/Debt$2.4 billion / $12.5 billion
Dividend Yield2.9%
Competitors

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 5,796 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, meeyatch69, nicely summed up the bull case for community:

It is the clear best in breed in its industry. [L]eadership has shown enough business smarts to make intelligent and even creative changes to their business without altering the fundamental business model that made it one of the most (if not THE most) recognized brand on the planet. In tough times, during a down economy, people love to go to McDonalds. When times are good, people love to go to McDonalds. If you have children at all, you're almost required to hit it up at least once every ten days ... and don't get me started on college kids. Every portfolio should have three or four of these types of stocks.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, McDonald's may not be your top choice.

We've found another retail play we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of McDonald's and Yum! Brands. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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