Essay about Mcdonald

5506 Words Mar 26th, 2015 23 Pages
McDonald’s Corporation
Analyst Maria Jose Abuawad April 23, 2013

Pros:

      
Figure 1 1 Year Performance MCD vs. S&P 500

Strong brand Economies of scale Cohesive franchisee system International growth opportunities High profit margins Pays a dividend Market share leader
Cons:

   Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2015 P/E Projected 2015 EPS Dividend Yield Debt Rating Beta
Recommendation:

Vulnerable to currency exchange Highly competitive industry Obesity propensity
Porter’s Five Forces:

MCD NYSE Restaurants Consumer Staples Income and Capital Appreciation US $99.3 Billion $83.31 - $99.78 $99.05 18.48 17.5x $7.24 3.10% A 0.34
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Each share was worth $53.98. Now, McDonald’s shares are trading at $98.51. This yields a 115% total return including dividends. McDonald’s is the second best performer in the consumer staples sector, after Diageo Adr with a total return of 120%. MCD stock also provides a solid dividend yield and the fund is currently receiving a 3.16% annual return. Currently, the consumer staples sector compromises a 16.23% of the EIF portfolio. The target for this semester is 11.66%. This difference makes the fund overweight in the consumer staples sector by 4.57. Although the sector is currently overweight, I don’t see any reason to sell MCD stock. The company is trading at its 52 week high, but dividends received and the capital appreciation still makes this stock worth owning

Altria Group Inc Diageo Plc-Sponsored Adr Mcdonald's Corp Procter & Gamble Co/The Starbucks Corp

793 246 365 460 510 2,374

Consumer Staples $24,931.92 4.88% $28,678.68 4.88% $19,702.70 4.88% $26,367.20 4.88% $26,229.49 4.88% 125,910 0

$ $ $ $ $

23,512.45 21,505.32 32,196.00 36,073.68 27,351.30 140,639

2.90% 2.66% 3.98% 4.46% 3.38% 17.37%

2.03% 1.86% 2.78% 3.12% 2.36% 12.15%

2

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