3 Reasons to Sell McDonald's

Updated

If you're an investor looking to take out a position in any stock, you need to understand the bear and bull thesis of that company first. Even the largest, most-recognized, and highest-quality investments out there benefit from this critical eye.

Up today is Dow Jones Industrial Average (INDEX: ^DJI) stalwart McDonald's (NYS: MCD) , and three reasons to consider selling it today. No matter how much you love this company, its size could be an inhibitor to growth going forward, with many promising markets already saturated with locations. And if you're looking at the fast-food space, there are other equally great companies with higher expected growth rates as an alternative. Lastly, in the company's most recent earnings release we saw the troubles that can manifest by being such a global company. Currency headwinds took a huge bite out of McDonald's earnings, with Europe acting as the main anchor there. Given how severe the situation is over there, these pressures are unlikely to wane any time soon.

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The article 3 Reasons to Sell McDonald's originally appeared on Fool.com.

Austin Smith owns shares of McDonald's. The Motley Fool owns shares of McDonald's and Starbucks. Motley Fool newsletter services recommend Burger King Worldwide, McDonald's, Starbucks, 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 Motley Fool has a disclosure policy.

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