im thinking about investing in MCD and could use some help learning more about it. i dont care if your outlook is good or bad, im just trying to find out more about the company before i buy shares.
one thing that i like about it is its p/e which is under 20. its really good compared to other chains like yum or wen.
on the other hand, the last quarter wasnt good. im looking at the posts here and see raising food cost and that might cut into profits. i dont know enough about the new ceo but i can look that up. the other thing im really scared about is MCD getting clipped like chipotle.
im just trying to look for any info to learn about mcd. thanks.
Yeah thanks, I was really worried about mcd dropping a lot with all the news coming out of Europe here soon but I saw the article that fortyseven pointed out on how mcd did during the 2008-2009 crisis and then looked at the long term chart again.
During 2008-2009 crisis it fell only $10 from around $63 to $53. I was very happy about seeing that. During the 2002-2003 crisis it fell from the mid 20’s to mid teen’s but as I saw in that McDonalds special on tv I think this was before the turn around, so I really wont consider this drop in price.
Im going to buy just a little bit at a time over a few months at a time. And if it drops a lot, my first batch will only be a small amount of my portfolio so it will be ok if it falls. If the price falls, the yield will go up.
And given enough time by looking at its chart of an upward slope over the last 10 years, ill assume it will go up in value.
Im just about 80% done in my analysis of mcdonalds.Based on fundamentals,its ratios,return on assets=16.9%,return on equity=0.386 witch is higher than return on assets so they make a profit from borrowing money...its just an all around rossy picture.Small increase the stock price over time is expected(1970 to now) due to great fundamentals that fill demand.Its in the maturity stage with some growth,decline seems far away.To add to safe slow growing stock portfolio.Disclosure im an awfull stock picker but just started taking an analysis view of stocks based on 29 variables like eps,debt,growth,sales,cost,investments,dividend,competition,economy,slope,trend,cycle of life,close to zero$ or closer to 100 stock,retained earning,assets debt equity composition,cash flow,ideal company,data on the company available?,news,demand for stock,graph, industry risks,placing stops to protect investment.decision tree(prevent emotions).
And diversification(invest a small amounts at a time,add if you make money.).Its my own system but on 20 variables so far,i find only 3 to be risky so 85% positive feedback for MCD.
Thanks for the reply. I forgot that mcd takes money and leverages it in other investments.
Yeah im going to follow your advice and start a small position and add to it over time. I just looked at mcd’s chart for the last 10 years and it goes down only 10-15% at a time during troubled times in our economy but has steadily risen over the same time span to have a nice upward slope. I don’t know if it can go higher and but its steady and safe and I could use that in my portfolio.
I’m not a big fan of a 3.2% div but its safe and growing which is good. I have plenty of reits, energy and utility stocks that pay at or waaay over 8% and are expected to grow but I’m looking for more recognizable, solid companies that are sound investments but will also keep my interest in the stock market. I mean its great to see my stocks appreciate but it’s hard to get pumped up about a mining company in the middle of nowhere. It’s easier to get pumped up by seeing a mcd’s commercial and say ok I have that in the portfolio. I know it’s a rookie investor mentality but it helps me. Thanks again.
This is a pretty good article on the same-store sales issues, even thought its from MF.
Sounds like you need to be asking yourself what price is reasonable for you to buy MCD. That'll take some number crunching on your part.
Thanks for pointing out that article. One part of that article that I liked was the author’s discussion of mcd’s growth during trouble times: “Note how well McDonald’s did in the great recession of 2008-09. Sure growth slowed, but it didn’t go negative, and McDonald’s was a stock market darling in the period”. So even if things don’t pan out in Europe and the market goes down, people are still gonna eat at mcd’s and the price shouldn’t depreciate big time aka chipotle from my entry point.
Yeah, im a little worried about the entry point, but looking at mcd’s chart for the last 10 years gives me a little more confidence in just jumping in the stock as its just a steady up slant. So over enough time it should continue the trend even if it pulls back in the short-term. But the more I think about it, the entry point won’t matter because I’m going to become an investor not a trader, and if MCD can just hover around $80 I’ll be contempt and the div over time would make up the difference. Another thing I liked, getting back to the author was in early 2009 during with height of the crisis it only fell from $63 to $53 and I really like this when thinking about jumping in.
I start a position if I write so much about a stock and if its outlook looks ok. Thanks for the help.