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Is McDonald's Really That Disappointing?

The following video is part of our "Talking Stocks" series, in which Motley Fool analyst Austin Smith discusses trends across the investing universe.

In today's edition, Austin discusses the recent "disappointment" that Wall-Street felt with McDonald's same-store sales miss. The 3.3% rise the company posted was less than the 4.1% analysts were forecasting. Although shares traded lower on the news today, Austin still thinks McDonald's is one of the best places to park long-term cash. Its dividend continues to be robust, and the potential for expansion in China remains enormous.

If you're not sold on the Golden Arches, though, there is one other company in this space that Austin thinks has the room to run and be one of the great restaurant stocks of the future.

One of the big pieces of McDonald's growth engine is international operations, which is why it was named one of the 3 American Companies Set to Dominate the World. You can read about why, as well as the other two companies in the report, by clicking here now.

Austin Smith owns shares of McDonald's but of no other companies mentioned here. The Motley Fool owns shares of Starbucks, Panera Bread, and Chipotle Mexican Grill. Motley Fool newsletter services have recommended buying shares of Chipotle Mexican Grill, Starbucks, McDonald's, Panera Bread, and Yum! Brands, creating a bear put spread position in Chipotle Mexican Grill, and writing covered calls on Starbucks. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (1) | Recommend This Article (2)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 17, 2012, at 1:46 PM, calidan525 wrote:

    I don't think the answer to this needs to be sophisticated. The fact is that most people are not entering long positions in "sell in May" and when you have news that contains no optimism on top of that who would go long right here right now? MCD may be cheap right now in your opinion but there is nothing wrong with waiting to buy it cheaper IMHO

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