McDonald's Corp (NYSE:MCD)

Need to have in the portfolio forever

"McDonald’s May Store Sales Rise as U.S. Gains" (Jun 10, 2013 8:58 AM ET)

bloomberg.com/news/2013-06-10/mcdonald-s-may-store-sales-rise-as-u-s-gains.html

- McDonald’s Corp., the world’s largest restaurant chain, said [in the aggregate] sales at stores open at least 13 months rose 2.6 percent last month, topping analysts’ estimates, as the Dollar Menu and breakfast items drove the U.S. business.
- Analysts projected a 1.9 percent increase, the average of 17 estimates compiled by Consensus Metrix.
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- Same-store sales in the U.S. advanced 2.4 percent
- Analysts estimated a 2.1 percent gain.

- U.S. sales were helped by breakfast, chicken items and “everyday value,” the company said in the statement. The new egg-white breakfast sandwich and Premium McWraps also fueled May sales.
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- Store sales rose 2 percent in Europe
- Analysts estimated gains of 1.2 percent
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- Store sales rose 0.9 percent in Asia Pacific, the Middle East and Africa
- Analysts estimated gains of 1.5 percent

- McDonald’s May same-store sales fell in China, the company said in the statement.
- Restaurants in the Asian nation have faced a consumer backlash against chicken products since the outbreak of avian flu earlier this year.

- Same-store sales at McDonald’s locations in Japan rose 0.5 percent in May
- The first monthly increase since March 2012
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- Yum! Brands Inc. (YUM), which owns KFC and Pizza Hut, last month said same-store sales tumbled 29 percent in April in China as customers there remained concerned that poultry may not be safe to eat. Yum, based in Louisville, Kentucky, is scheduled to report May store sales for China tomorrow.

- Other U.S. restaurant chains are ramping up new menu item introductions, too. Wendy’s Co. is selling flatbread chicken sandwiches, while Burger King Worldwide Inc. (BKW) last month rolled out a summer menu that includes a boneless rib sandwich, frozen lemonade and sweet-potato fries."
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- Comparable, or same-store, sales are an indicator of a company’s growth because they include only older restaurants.

- McDonald’s has about 34,500 stores worldwide, including more than 14,100 in the U.S. About 19 percent of locations are owned by the company.

(source) :

bloomberg.com/news/2013-06-10/mcdonald-s-may-store-sales-rise-as-u-s-gains.html

Yum! Brands Inc. (YUM CAPS link) :

caps.fool.com/Ticker/YUM.aspx

Solid growth along with menu innovations will keep this company as an industry leader for years to come.

For reference point and to allow for comments by others. As of the end of March, 2013.

ROE 36.59%
Trailing PE 17.91
PB 6.39
Div yield 3.10%

Near term price target of $104

Sell bacionk of company stores to franchises, Real estate appreciat

Its McDonald's. It dishes out a solid dividend and has never lowered its dividend.

I think management will adapt the menus to a more healther choice, and more emphasis on customer loyalty, which the consumers are demanding.

Will continue to be a stable stock because of its rep.

I expect MCD price to fall 3% in year (revert to trend growth in value). I expect S&P 500 price to fall 5% during same time.

M* Dividend Builder pick

Its McDonalds.

if you can't beat'em....

mcd

http://www.fool.com/investing/general/2013/03/14/16-analysts-reveal-their-top-2-stocks.aspx

Dividend grower.

MF says it better than I could:
"Over the last five years, the company has grown earnings by nearly 21% annually. With its regular stock buybacks, earnings per share grew nearly 32% and its dividend is up 22% annually in the last half-decade. Few companies could boast better."
Plus, this company innovates like crazy. They are the AAPL of fast food.

best of breed

MCD is an outstanding stock for numerous reasons:

Here is the biggest reason, IMO:

THE EXPANSION: I love the expansion. MCD ownership is doing everything right by expanding their addicting food into places like Russia, India, and other parts of Europe, and of course, China. Soon the whole world will be fat, but MCD will be raking in the profits. The stock has been on a climb forever, but believe me folks, it's not done yet. Expect the profits to continue pouring in, and a stock price of 150 in 2 years. Best stock I see right now is MCD. That is why it's my first new pick for 2013. yep. I came back to MF just for this pick.