You're not going too far out on a limb by predicting MCD will be in the 80's before long. That's a conservative target, IMO. Given the poor revenue and earnings figures lately, I'd look for the mid to low 80's. Interest rates are poised to start moving up which will make the present dividend yield unattractive to new money. The simple fact is that McDonald's has gotten too unwieldy to be efficiently managed. Opening more and more restaurants is not the solution to their problems. The company's best days are behind it, at least until they find new top managers who have the vision and knowledge to set the company on a new path. I've been out of the stock since it crossed above par, and I won't be back until I see about $85 or lower. Meanwhile, I'm enjoying my gains in EPD plus the 5% discount on shares bought in the DRIP.
Thanks. On a serious note, it's amazing how many novice investors think a stock split is some sort of magic elixir to juice up a sick stock price. MCD is already one of the most widely held stocks in the huge universe of stocks, so "appealing to new investors" is not likely to have any effect one way or the other. The kind of investor who buys tens or even hundreds of shares is not what MCD needs. Institutional investors, the kind that will move the stock, are what are needed to move it higher, and those investors will buy only if and when the company gets the sales and earnings growing robustly again. If the present management can't achieve that, they should be replaced. "Special" dividends and buybacks, especially when financed with borrowed money, is nothing more than a bribe to get small investors to buy the stock. That's nothing more than a move of desperation on the part of management to save their jobs. Building debt to finance totally non-productive payments to shareholders isn't going to help the company in the long-term.
There are things MCD could do better. For example, a lot of people like diet soda. A lot of people also like caffeine free drinks. Unfortunately it is difficult if not impossible to find the combination of both at a McDonalds. You can find diet but not diet AND caffeine free, At one time they had really good lemonade but have since eliminated it (bad idea). They also have a great strawberry-lemonade but only during warm months.
Also, they cut off breakfast items at a certain time which could be carried on the menu all day instead of just in the mornings.
On top of that, Burger King has far better sandwiches (except for fish where MCD seems to have the edge).
and with trouble in Japan and strong Dollar sales internationally will be down huge imo...
PE Price to earnings of mcdonalds (17) is like it had 17% sales and earnings growth per year when it has 0% or maybe negative growth. Mcdonalds can must and will go lower you will see and many will lose most of their gains in denial and listening to wall st pros who never tell anyone to sell when they should..
93.84 is where it is now I will reference this post when it hits the 80's
The fast casual space has problems with few exceptions. MCD is included in that, weeks of negative articles, downgrades, the villian in the $15.00 per hour minmum wage. MCD certainly may test low 90's and so what. If you can buy more. Collect the Divi..
They have a few simple problems,they will straigthen them out one way or the other and move on,and move higher... once again. They are the 800 gorilla in the room..
It's only a matter of time before the others follow with more downgrades and earning cuts! With same store sales dropping and wages rising this is overpriced at this level. Expect a retest of the low 90's.
MS is TRYING to get cheap shares. Not going to work. I've seen them do this with CSCO and MS wasn't successful. MCD does have some problems but they are worth more than $102/share.
Sentiment: Strong Buy
McD is offering free "coffee"; not dessert If you want anything more than plain coffee and creamer you should have to pay for it.
BTW, recently in for the first time with a six figure investment. Good luck to all.
The University of Alberta just validated for the third time this year that BioLargo's (BLGO) AOS Filter not only decontaminates water far better than any other technologies but it does so in seconds versus hours and at only 1/20th the cost of the closest competition.
Professor Lynn McMullen at the University of Alberta said the AOS Filter can solve today's food safety issues with performance that is unrivaled.
With their huge meat and food processing operations. the AOS Filter is a perfect fit for MCD to be first to deliver the best food safety operations in history.
Sentiment: Strong Buy
At my local McD's, they charge .50 cents to add flavoring to the $1.00 coffee. Sounds silly - and the signage makes no mention of this. Are they correct in doing so?
I have heard from the insider that the free coffee works beautifully and graping market share and pocket share from consumers. And, the coffee is great. I noticed that customer ended up buying more than coffee. 10 cents feebie attracted 5 - 7 dollars sales with 2 to 3 dollars net profit. Look at the balance sheet, amazing track record. Assets is increased steadily year over year roughly 10%, number of treasury stocks keep increasing positively. the outstanding stock decrease by another significant percentage year over year. No wonder Bill Gates foundation bought it as core holding. Very predictable and profitable business with moat. ROE of 35% very impressive. .
Sentiment: Strong Buy
but seriously, McDonald's.......... 1 in 40 million could win a fiat??? why not just make it an amc pacer or yugo? just because a car's made in italy, it doesnt mean i want the piece of junk. a fiat..... id rather have coupons for free food
Dwindling demand cut factory activity across much of Asia and Europe in September, sending it to multi-month lows and raising the chances that global growth will slow in the months ahead.
Despite gentler price rises, China’s figures were mired barely above contraction, Britain slumped, and the drop in new orders did not even spare Germany, the strongest member of the euro zone currency bloc, or France, its No. 2 economy.
mcd's free coffee works better, revenue generating best opportunity, should keep continue free coffee upto year end. something free will attract mor customers and more business.
Why not make it 10 for 1 or 20 for 1 while you're at it? If they get the price down low enough, they might be able to sell them a side order with a Big Mac. They could just wrap the double cheeseburgers in stock certificates.