Why McDonald's Looks Scrumptious 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's 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

$99.0 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)

36.4%

Cash/Debt

$2.3 billion/$13.6 billion

Dividend Yield

3.1%

Competitors

Burger King Worldwide

Starbucks

Yum! Brands


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

On CAPS, 95% of the 6,230 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, BACnumber1, touched on McDonald's still-very tasty growth prospects:

I love the expansion. [McDonald's] is doing everything right by expanding their addicting food into places like Russia, India, and other parts of Europe, and of course, China. ... Expect the profits to continue pouring in, and a stock price of 150 in 2 years. Best stock I see right now is [McDonald's]. That is why it's my first new pick for 2013. Yep. I came back to [CAPS] just for this pick.

After making investors rich in 2011, McDonald's has been one of the worst-performing blue-chip stocks of 2012. Our top analyst on the company will tell you whether you should be worried by this trend, and he'll shed light on whether McDonald's is a buy at today's prices. Click here now to read our premium research report on the company.

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 Scrumptious 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. It recommends and 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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