OK, this is getting kind of boring -- but in a good way. McDonald's
McDonald's same-store sales rose 8.2% in October. Even here in the U.S., where the economy's weak at the moment, comps were up an impressive 5.3%. Overseas, European comps increased 9.8%, and comps in Africa, the Middle East, and Asia increased 11.5%.
In late October, even as consumers worldwide were apparently scarfing down chicken nuggets and double cheeseburgers, my colleague Rick Munarriz nominated McDonald's in his Throw This Stock Away series. I disagreed, although I'm glad he brought up a contradictory point of view. These October comps just reinforce my longtime opinion that the company's a keeper -- even more so now that its value proposition is really making its mark with consumers.
I've recently voiced doubts about the fortunes of several other restaurant companies in this tough economy. In particular, I think Buffalo Wild Wings
McDonald's will soon face some tough comparisons after all this excellence, but so what? It's been up against tough comparisons for quite some time now, yet it's continued to admirably beat analysts' expectations. I'm really beginning to believe that too many investors have tended to underestimate the power of the Golden Arches.
Sometimes you've got to pay up for performance, and McDonald's has performance in spades. It's also got the leadership position in cheap fast food. Heck, it even pays a dividend! I continue to believe that McDonald's is a high-quality -- and admirably safe -- long-term stock for investors' portfolios.
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