4-Star Stocks Poised to Pop: McDonald's
Based on the aggregated intelligence of 170,000-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 | $89.6 billion |
Industry | Restaurants |
Trailing-12-Month Revenue | $25.5 billion |
Management | CEO James Skinner (since 2004) |
Return on Capital (Average, Past 3 Years) | 17.7% |
Cash/Debt | $1.94 billion / $12.05 billion |
Dividend Yield | 2.8% |
Competitors |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 5,357 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward. These bulls include bobbyabull and Vermilian.
A couple of months ago, bobbyabull listed several of McDonald's positives:
The only knock on this world famous American institution is that it's not a health food joint. That's not enough to offset their innovation, global presence, dividend and delicious product. ... The bottom line is that McDonald's is always busy and the stock yields 3%. This is an excellent long term, "sleep at night" staple for almost any portfolio.
Currently, McDonald's even trades at a P/E of 17.5. That represents a discount to other fast-food stocks like Starbucks (26.2), Yum! (21.2), and Chipotle Mexican Grill (NYS: CMG) (54.2).
CAPS member Vermilian elaborates on the bull case:
McDonald's will continue to operate one of the finest global restaurant plays available for investment. A great dividend stock for the long haul. One stock everyone should own. People have got to eat, and McDonalds continues to find new ways to reinvent itself and stay on the cutting edge. Loved worldwide.
What do you think about McDonald's, or any other stock for that matter? 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, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
At the time thisarticle was published Motley Fool newsletter services have recommended buying shares of McDonald's, Starbucks, Yum!, and Chipotle, as well as creating an iron condor position on Chipotle. The Motley Fool owns shares of Starbucks, Yum!, and Chipotle. Try any of our Foolish newsletter services free for 30 days.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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.
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