Comments on: Update McDonald’s (MCD)

By: Using ROIC to determine whether to buy

Using ROIC to determine whether to buy — Thu, 04 Mar 2010 12:37:03 +0000

[...] Let me explain how this works and show you how powerful it is by looking at one of the best ROIC stories in Jubak’s Picks, McDonald’s (MCD, news, msgs). (See my most recent update on the Golden Arches.) [...]

By: sigli

sigli — Thu, 11 Feb 2010 14:47:09 +0000

@Southof8–It may not create jobs here, but it may bring profit here, which can be spent here, and that will create jobs here. It may also increase protein demand. US farmers are the best in the world, so they’ll benefit the most.

May I propose that every single little thing does not have to be about jobs and the US trade deficit? Besides, a service economy is a sign of wealth and not poverty. While I have issues with “jobs going overseas”, I also have a feeling that things are not be as bad as we often act like they are. Besides, cheap stuff from China and Mexico enriches everyone here, and allows us to spend more of our work hours in service industries (I like to golf, do you?). IMO, the challenge is not the cheap stuff, but the off balance spending.

By: bsorge

bsorge — Thu, 11 Feb 2010 14:11:19 +0000

Actuallly, if it were not for the good dividend I think I would seriously look to exit this stock at around 65.-. I think the economic recovery will favor other asset classes shortly.

By: preicher

preicher — Thu, 11 Feb 2010 13:32:36 +0000

McDonalds is trying to play catch up to KFC (Yum Brands) and others in China, which is a great bet seeing as though the market is pretty well saturated here in the U.S. McDonalds, like so many others, have their greatest opportunity for growth in emerging markets. I believe that is the point Jim has been hammering the last few months.

Ed, I agree with you as well. While MCD may not be a home run stock pick (we missed that opportunity many moons ago), it’s definatly not one I’m looking to sell anytime soon. I like to sleep at night.

By: EdMcGon

EdMcGon — Thu, 11 Feb 2010 09:41:45 +0000

Jim,
Dare I point out that McDonald’s plans may NOT be for an economic recovery? Frankly, they are one of the few companies which has seemed to thrive in the downturn, undoubtedly due to their low-cost menu.

For the economic “doom and gloom” types (like me), McDonald’s is a pretty good blue chip play.