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5-Star Restaurant Stocks Poised to Pop: McDonald's

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fast-food giant McDonald's (NYSE: MCD  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at McDonald's and see what CAPS investors are saying about the stock right now.

McDonald's facts

Headquarters (Founded)

Oak Brook, Ill. (1948)

Market Cap

$89.2 billion

Industry

Restaurants

Trailing-12-Month Revenue

$27.4 billion

Management

CEO Donald Thompson (since July 2012)
CFO Peter Bensen (since January 2008)

Return on Equity (average, past 3 years)

19.1%

Cash/Debt

$2.5 billion / $13.6 billion

Dividend Yield

3.5%

Competitors

Burger King Worldwide (NYSE: BKW  )
Yum! Brands
(NYSE: YUM  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 6,119 of the members who have rated McDonald's believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, All-Star gweech, succinctly summed up the bull case for our community:

[McDonald's] is firing on all cylinders. While their debt is somewhat high for my tastes, their profitability is unmatched and their brand so strong. As much as pundits and health nuts want to make a controversy over their nutritional value, the bottom line is that [McDonald's] leads the way in transparency and education about their food. ... [McDonald's] is a strong brand and in my mind, still a growth story. ... This is a strong long-term buy and one that sits in all of our IRAs and kid's college funds.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, McDonald's may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of McDonald's. Motley Fool newsletter services recommend Burger King Worldwide, McDonald's, and Yum! Brands. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Comments from our Foolish Readers

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 October 23, 2012, at 6:38 PM, neamakri wrote:

    Cool. Just this morning I purchased my first 20 shares MCD. So now every time I spend a dollar at MCD it's like paying myself!

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Related Tickers

6/19/2013 4:02 PM
YUM $71.51 Down -0.71 -0.98%
Yum! Brands CAPS Rating: ****
MCD $98.81 Down -0.94 -0.94%
McDonald's CAPS Rating: ****
BKW $20.78 Down -0.17 -0.81%
Burger King Worldw… CAPS Rating: *

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