Has McDonald's Lost Its Touch?

The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith discusses topics around the investing world.With McDonald's trading closer to its 52-week low than to its high, many investors are wondering whether the Golden Arches has lost its touch. This reaction just shows how quickly the market is willing to turn on incredibly well-managed and historically excellent companies, and it also shows how unjustified that shift can be. McDonald's continues to show incredible fundamentals, and its recent decline is an overreaction to same-store sales "misses" and misplaced concerns of a global slowdown. While the latter may be a reality, it won't hit McDonald's as badly as the market seems to think.

If nothing else, McDonald's dividend is reason enough to own the stock for the long run. The company's track record of dividend growth is enviable. If you like that regular payment from your companies but aren't sold on Mickey D's, it doesn't offer the only great dividend out there. You can still Secure Your Future With 9 Rock-Solid Dividend Stocks" with some of our other top recommendations.

At the time thisarticle was published Austin Smithowns shares of McDonald's. The Motley Fool owns shares of Arcos Dorados and Panera Bread.Motley Fool newsletter services recommendArcos Dorados, McDonald's, Panera Bread, and Yum! Brands. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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