McDonald's Corp (NYSE:MCD)

TMF1000 (99.78) Submitted: 4/23/2012 11:54:49 AM : Start Price: $92.36 MCD Score: -12.07

Started on Caps at $95.41: The PE ratio was 17.83. Its dividend yield is 2.93%
McDonalds continue to grow cash flow. TTM cash flow before the latest report (no cash flow numbers yet) 4.42 billion or $4.27 per share. This gives them a cash flow yield of 4.5. I believe once the latest quarter cash flow is announced, it will be a higher yield. They have the cash flow to continue to buy back shares. They also have a great history of raising dividends. I believe it is a stable investment.

I don't own it, but I am targeting a PE ratio of 16.91 for a price of $90.47. I think that price represents its downside risk. I don't really think it will go that low, without a lot of help from the Dow.

Analysts believe they will make $1.43 for the second quarter and $5.71 for the year
Secondary target: $91.82 to $96.56 which makes its a buy now.

McDonalds (MCD)

January 24, 2011 4Q:2010 earnings’ highlights:
** 4Q revenues were $6.214 billion up from $5.973 billion
** Fiscal 2010 revenues were $24.075 billion up from $22.745 billion
** 4Q earnings were $1.16 up from $1.11
** Fiscal 2010 earnings were $4.58 up from $4.11
** Cash flow for the year was $4.206 billion or $3.95 per share
** Capital expenditures $2.136 billion up from $1.952 billion
** Property and equipment $22.061 billion
** Diluted share count 1.069 billion
** Annual dividend $2.44
** Trading range between January 24, 2011 and April 21, 2011 was $73.12 to $78.41: PE ratio range was 15.97 to 17.12: Cash flow yield range was 5% to 5.4%: Dividend yield range was 3.1% to 3.34%

April 21, 2011 1Q:2011 earnings’ highlights:
** Revenues were $6.112 billion up from $5.61 billion
** TTM revenues were $24.577 billion or 23.30 per share
** Earnings were $1.15 up from $1.10
** TTM earnings were $4.63 per share
** Diluted share count 1.055 billion
** Cash $1.94 billion: Debt $12.04 billion: Property $22.645 billion
** Cash flow for the quarter was $1.044 billion up from $1.021 billion
** TTM cash flow was $4.229 billion or $4.01 per share
** Dividend yield range was $2.44
** Trading range between April 21, 2011 and July 22, 2011 was $76.54 to $87.04: PE ratio range was 16.53 to 18.80: Cash flow yield range was 4.6% to 5.2%: Dividend yield range was 2.8% to 3.2%

July 22, 2011 2Q:2011 earnings’ highlights:
** Revenues were $6.905 billion up from $5.946 billlion
** TTM revenues were $25.54 billion or $24.37 per share
** Earnings were $1.35 up from $1.13
** TTM earnings were $4.85 per share
** Diluted share count 1.048 billion
** Cash flow for the quarter was $1.052 billion up from $854.2 million
** TTM cash flow was $4.42 billion or $4.22 per share
** Annual dividend $2.44 per share
** Trading range between July 22 and October 21, 2011 was $82.01 to $91.22: PE ratio range was 16.91 to 18.81: Cash flow yield range was 4.6% to 5.2%: Dividend yield range was 2.7% to 3%

October 21, 2011 3Q:2011 earnings’ highlights:
**Revenues were $7.166 billion up from $6.305 billion
** TTM revenues were $26.401 billion or $25.36
** Earnings were $1.45 up from $1.29
** TTM earnings were $5.01
** Diluted share count 1.041 billion
** Cash flow for the quarter was $1.477 billion up from $1.42 billion
** TTM cash flow was $4.48 per share
** Annual dividend $2.80
** Trading range between October 21, 2011 and January 24, 2012 was $91.09 to $102.22: PE ratio range was 18.18 to 20.4: Cash flow yield range was 4.4% to 4.9%: Dividend yield range was 2.7% to 3.1%

January 24, 2012 4Q:2011 earnings’ highlights:
** 4Q revenues were $6.823 billion up from $6.214 billion
** Fiscal 2011 $27.006 billion up from $24.075 billion
** TTM revenues were $27.006 billion or $26.09 per share
** 4Q earnings were $1.33 up from $1.16
** Fiscal 2011 earnings were $5.27 up from $4.58
** Diluted share count was $1.035 billion
** Cash flow for the year was $4.42 billion or $4.27 per share
** Annual dividend $2.80
** Trading range between January 24, 2012 and April 20, 2012 was $94.13 to $101.29: PE Ratio range was 17.86 to 19.22: Cash flow yield range was 4.2% to 4.5%: Dividend yield range was 2.8% to 3%

April 20, 2012 1Q:2012 earnings’ highlights:
** Revenues were $6.547 billion up from $6.112 billion
** TTM revenues were $27.44 billion or $26.64 per share
** Earnings were $1.23 up from $1.15
** TTM earnings were $5.35
** Diluted share count 1.03 billion
** Annual dividend $2.80