5-Star Stocks Poised to Pop: McDonald's

Updated

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 coveted five-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

$89.4 billion

Industry

Restaurants

Trailing-12-Month Revenue

$27.4 billion

Management

CEO Donald Thompson (since July 2012)
CFO Peter Bensen (since 2008)

Return on Equity (average, past 3 years)

36.2%

Cash/Debt

$2.3 billion / $12.8 billion

Dividend Yield

3.2%

Competitors

Burger King Worldwide
Doctor's Associates
Yum! Brands


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

On CAPS, 95% of the 5,980 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, tichtalk, succinctly summed up the bull case for our community:

McDonald's is by far the strongest company in the quick service restaurant industry and is consistently the first mover. It has positioned itself as the industry leader, with the highest market capitalization. The firm also has a very strong balance sheet and has great executive leadership. Although input prices are rising, McDonald's has great buyer power.

If you want market-thumping returns, 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 its five-star rating, McDonald's may not be your top choice.

We've found another retailer 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 thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of McDonald's. Motley Fool newsletter services have recommended buying shares of McDonald's. 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.

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