McDonald's Corp (NYSE:MCD)

CAPS Rating: 3 out of 5

With its universally recognized Golden Arches, McDonald's franchises and operates fast-food restaurants around the globe.

Recs

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Player Avatar kahunacfa (68.00) Submitted: 12/18/2012 4:42:23 AM : Outperform Start Price: $89.86 MCD Score: +0.30

McDonald's is a very mature fast food restaurant with significant growth opportunities outside of the United States. Especially in China, India, and the rest of Asia. While hamburgers will always be on the menu MCD will adapt as necessary in other markets.

MCD has been soft over the near-term. As the economy continues to slowly improve the company's results will become stronger. Better earnings results will improve the stock price.

I compute an Intrinsic Value for the shares in the $132 - $137 per share range assuming an EBITDA growth rate in the 8.25% - 8.75% range over the next five years.

Kahuna, CFA

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