+ Watch MCD
on My Watchlist
With its universally recognized Golden Arches, McDonald's franchises and operates fast-food restaurants around the globe.
I like the turnaround story and the menu changes they are starting to make.
All over news meats cause cancer and some have traces of human dna in new processed meats reports
Image and brand tarnished by growth in healthy eating, pink slime and burgers that don't age. So many better options in fast foods these days. All-day breakfast sales spike is short term.
sales up on all day breakfast but franchisees know its a fiasco.
The continued expansion of their product line ("Breakfast all Day", "McRib is Back", etc) is complicating operations. But fast food/fast casual is all about simplicity and operational efficiency. I think companies like Chipotle and In-and-Out -- who are very disciplined with a simple menu and with lower employee turnover -- will eat McDonalds' lunch. At $112/share, MCD now sells for 26 times earnings. With brand perception problems and low comp growth, I don't think they're worth that much of a premium to the market (which now sells at a P/E of 18).Underperform.
Humans will start realizing it's possible to eat well and eat often and eat without breaking the bank, all without torturing animals and forcing them into a short horrible life of cruelty for cheap profit and toxic health. It's a simple equation, really.
They'll make the breakfast idea work, the impact of minimum wage increases will prove inconsequential, and maybe they'll even figure out how to brew coffee that doesn't taste like spew!!
With a one year price appreciation of 2.8%, compared to a 32.1% appreciation for its industry, investors might be asking "What Price Yield?" In fact, MCD's 5 year price appreciation is less than the industry's 1 year appreciation. Worse still, a measly 6.7% projected growth rate puts the Forward PEG at a sky high 3.0, an over 40% premium to both its own 5 year Forward PEG average, and to the S&P average. This is an expensive stock that has under-performed for an extended time interval. Analysts are lowering earnings estimates, despite the turn-around story. Plus, the company has failed to meet consensus earnings estimates in 5 of its last 6 reporting quarters. What Price Yield, indeed.
Declining sales, increasing competition, uneasy franchisees, poor reputation. Co may have to shed store count to become healthy again.
Pressure from workers to raise wages-unfavorable image (at least in US/Europe)-not innovating to keep up with trends
Adverse eating behavior on the public, too much competition. Pressure to raise wages.
Micky D 17,000,000,000 TRILLION BURGERS SOLD. THEY WILL CATCH UP TO THE DEBIT AT THIS RATE.
McDonnald's is in the early stages of a long, slow turnaround plan -- at least they do have a plan that may just be successful. While investors wait, there is a reasonable dividend yield.David
US will drag, too utterly reliant on a product on the wrong end of macro health and food trends. International diversification will help but ultimately a laggard
Falling sales will cause panic.
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