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 |
$94.2 billion |
| Industry |
Restaurants |
| Trailing-12-Month Revenue |
$26.4 billion |
| Management |
CEO James Skinner (since 2004)
COO Donald Thompson (since 2010) |
| Return on Equity (Average, Past 3 Years) |
36.5% |
| Cash/Debt |
$2.4 billion / $12.5 billion |
| Dividend Yield |
3% |
| Competitors |
Starbucks (Nasdaq: SBUX )
Yum! Brands (NYSE: YUM ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 5,623 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward. These bulls include cncldwpntenmax and TarynOne.
This past summer, cncldwpntenmax tapped McDonald's as a tasty long-term opportunity:
They show to always be brain storming, tweaking and fine tuning an already great machine. As big as they are they continue to grind out new ways to keep up with the growth. ... They are a safe haven, and the king of the market hands down.
Currently, McDonald's even trades at a P/E of 18. That represents a discount to other fast-food stocks like Starbucks (25), Yum! (21), and Chipotle Mexican Grill (NYSE: CMG ) (47).
CAPS member TarynOne elaborates on the bull case:
Very well-run company since reinventing themselves a few years ago, adding healthier menu items, more options for kids meals, and especially their McCafe menu items, which have lured a significant amount of former Starbucks customers. History has also shown that [McDonald's] does well despite poor economic times here at home. Internationally they are doing well, even in Europe.
What do you think about McDonald's, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track McDonald's? Add it to your watchlist.
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