Many strong stocks have taken a hit alongside the broader market today. Count McDonald's
Amid financial panic everywhere, McDonald's reported strong July same-store sales. Its global comps increased 5.1%, bolstered by strong customer traffic in China. U.S. comps increased 4.4%, European comps jumped 5.3%, and Asia, Africa and Middle Eastern comps increased 4%.
In just a few hours' time, McDonald's shares have relinquished nearly 3% as the market chokes. Are investors even registering the Golden Arches' strong July? Hysteria is so prevalent that hardly anybody cares much well a strong company like McDonald's is actually doing.
Meanwhile, other restaurant stocks have fared much worse in the market's bloodbath. In intraday trading today, I ran across several other restaurant stocks that were getting absolutely taken to the woodshed: Ruth's Hospitality
The market's current pessimism gives calm, steady, long-term investors excellent opportunities to pick up shares in strong companies that have taken a temporary bludgeoning. McDonald's relatively minor share-price beatdown presents a far safer investment than many of its bloodier peers.
- Add Wendy's to My Watchlist.
- Add Ruth's Hospitality Group to My Watchlist.
- Add Ruby Tuesday to My Watchlist.
- Add McDonald's to My Watchlist.