Why McDonald's Looks Tasty for the Long Term

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'shas 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

$94.2 billion

Industry

Restaurants

Trailing-12-Month Revenue

$27.6 billion

Management

CEO Donald Thompson (since 2012)

CFO Peter Bensen (since 2008)

Return on Equity (average, past 3 years)

37%

Cash/Debt

$2.2 billion/$13.3 billion

Dividend Yield

3.3%

Competitors

Burger King Worldwide

Starbucks

Yum! Brands


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

On CAPS, 95% of the 6,238 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, JoeArizona, succinctly summed up the bull case for our community:

McDonald's knows how to provide consistent, quality food at good prices. No matter where you go, you can count on [McDonald's] for a little comfort food. Even with a weak economy, anyone can still afford a burger. Well managed and bigger than the competition, [McDonald's] looks good to me for the long term. And that dividend doesn't hurt, either.

Of course, that short pitch doesn't even come close to telling the entire story for McDonald's. You're in luck, though. The Fool's brand-new premium report on McDonald's looks at all sides of one of the most well-known brands in the world. You can grab your copy, which comes with free updates for 12 months.

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

The article Why McDonald's Looks Tasty for the Long Term originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide, McDonald's, and Starbucks. It owns shares of McDonald's and Starbucks. 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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