See companies like coke trading at 20 times earnings on expected growth of 6% - 7%, but mcd trades lower because investors are disappointed with 8% or 9% growth? Then you have bkw trading at 24 times pro forma earnings. All these companies have the same anemic growth,...makes you wonder why all the focus on mcd....mcd is just what the press likes to talk about because they are too dumb to talk about anything else.
I don't expect much. SMG is not likely to attempt any growth driving given their contract will expire soon. We should get some more clarity on other aspects of the business that had been obscurred by Sandy costs though.
Ko p/e 20
Sbux p/e 38
Nke p/e 26
Mcd p/e with this quarter eps now 17
The growth of the other guys is not "spectacular" enough to warrant such a premium in p/e over mcd's. Ko is expected to grow eps at about 7%. Nike is retail so earnings could evaporate real fast in a downturn. Sbux is mo growth company at this stage