Dow component McDonald's is underperforming the markets and its rivals. It may continue, say two strategists.
Unless you've been living under a rock for the past several months, you know the markets have had a great year.
One popular measure of the market, the Dow Jones Industrial Average, is up 22% year-to-date. However, one of its 30 components – McDonald's – may be up as well but it's lagging the Dow. The Golden Arches have gained only 8% so far this year. And, its performance has been sluggish compared to other restaurants like Wendy's and Burger King.
(Watch: Laggard McDonald's disappoints in US)
With nearly $28 billion in revenues over the last 12 reported months, and over 1.8 million employees (a few of whom demanding $15 per hour wages last week), McDonald's is the world's largest fast food chain. But, is it worth buying as an investment?
"If you want a really safe stock that pays a modest dividend, then perhaps," answers CNBC contributor Zachary Karabell, head of globalRead More »from Why even McDonald’s investors are feeling sluggish