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MCD - MoneyTalk's opinion...

Posted on 3/7/14 at 8:47 pm
Posted by The Hamburglar
McDonaldland
Member since Jan 2005
3296 posts
Posted on 3/7/14 at 8:47 pm
Have a few hundred bucks in MCD. Not much going on with this stock over the past year besides a slight downward trend. The "new" CEO has swung and missed a couple times (see 10 million pounds of unsold chicken wings), and there just seems to be zero buzz around this company right now. Other fast food companies are doing well, but MCD is just stagnant. Only reason to sell would be if I thought this money could be used elsewhere, but it is such a small amount it would be more of a headache than anything. Just curious as to what some of the experts opinion is on here regarding MCD and where it may be going.
Posted by crazyhorsedog
Member since Feb 2014
110 posts
Posted on 3/7/14 at 9:08 pm to
I'm no expert, hold. It's McDonald's for Christ sake.
Posted by brucevilanch
Fort Worth, Tejas
Member since May 2011
24333 posts
Posted on 3/7/14 at 9:12 pm to
quote:

The Hamburglar



quote:

MCD



Give us the inside track, bruh.
Posted by southernelite
Dallas
Member since Sep 2009
53151 posts
Posted on 3/7/14 at 9:55 pm to
McDonalds is pretty much recession proof.

They do seem to be revamping/modernizing their stores. But what can you really expect out of them in terms of growth?

If you are getting a good dividend yield, then hold on. If you can get a better dividend yield, move it.

ETA: For corporations like this, I would due some DD on their international growth opportunities/plans. That'll tell you if there may be more value there.
This post was edited on 3/7/14 at 9:56 pm
Posted by Feed Me Popeyes
Baltimore, MD
Member since Apr 2008
2104 posts
Posted on 3/7/14 at 11:06 pm to
quote:

Not much going on with this stock over the past year besides a slight downward trend. The "new" CEO has swung and missed a couple times (see 10 million pounds of unsold chicken wings), and there just seems to be zero buzz around this company right now. Other fast food companies are doing well, but MCD is just stagnant.


With MCD it isn't about "buzz" or "trend," it's about stability and consistent growth over the long term. If you already own it, there is almost no reason not to hold MCD forever

To look at it another way, try to think of 10 companies more fundamentally sound than MCD. You can't

Posted by rintintin
Life is Life
Member since Nov 2008
16157 posts
Posted on 3/8/14 at 10:15 am to
I would say it really depends on your risk tolerance. As said above, don't expect to see much growth from MCD, I mean how many more McDonald's can there be? But at the same time you shouldn't see any substantial dips, as they are a money making machine through thick and thin, and probably will be for you and my lifetimes.

I don't think you will be disappointed holding MCD forever, as you will most assuredly collect a dividend and see a small amount of growth. But if you are young and would rather take a chance on higher gains, I would look to a smaller upcoming company with more growth potential.
Posted by The Hamburglar
McDonaldland
Member since Jan 2005
3296 posts
Posted on 3/8/14 at 5:16 pm to
quote:

As said above, don't expect to see much growth from MCD, I mean how many more McDonald's can there be?


I actually disagree with you here...I don't expect the growth to come from new stores per se, but do expect some growth from new, more attractive menu options. This has actually been a strong suit for them (see McCafe), and that's why the whole Mighty Wings strikeout gave me pause.

Exxon, for example, is a big company that continues to show growth while paying dividends at the same time. What I'm playing with in my mind is 'whats the point of holding on to MCD when I can simply go put this money in XOM and see growth AND dividends while maintaining some stability.' I don't see Exxon going anywhere anytime soon.

Granted, its not enough money to really be worth my trouble, but just for discussions sake.
Posted by rintintin
Life is Life
Member since Nov 2008
16157 posts
Posted on 3/8/14 at 5:44 pm to
I should have said aggressive growth, or something of the like. I agree they will grow revenue and earnings in the future, that is the goal of every business. That coupled with dividends is a good mix, which is why I said I don't think you will be disappointed holding long term. I assumed from your question that you were looking for more aggressive growth potential.
Posted by jso0003
Member since Jun 2009
5170 posts
Posted on 3/8/14 at 10:21 pm to
I wouldn't own it, but that's just, like, my opinion man...
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