Here is what the Street has to say about MCD
We rate MCDONALD’S CORP (MCD) a BUY. This is based on the convergence of positive investment
measures, which should help this stock outperform the majority of stocks that we rate. The company’s
strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with
reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Other reasons why I bought this stock:
1. The debt-to-equity ratio is somewhat low, currently at 0.84, and is less than that of the industry average.
2. Compared to other companies in the Hotels, Restaurants& Leisure industry and the overall market, MCDONALD’S CORP’s return on equity significantly exceeds that of both the industry average and the S&P 500.
3. 46.30% is the gross profit margin for MCDONALD’S CORP which I consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.00% is above that of the industry average.
4. MCD has a growth score better than 90% of the stocks The Street rates.
5. The company has generated more income per dollar of capital than 90% of the companies The Street rates.
6. Low stock price volatility.
7. Dividend yield is 3.16%
ABOUT MCD: McDonald’s restaurants serve a varied, yet limited, value-priced menu in more than 100 countries worldwide. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign-affiliated markets and developmental licensees under license agreements. Independently owned and operated distribution centers, approved by the Company, distribute products and supplies to most McDonald’s restaurants.