Anyone worried that McDonald's
The fast food chain's third-quarter net income rose by 6%, to $1.26 billion, or $1.15 per share. Revenue decreased by 4% (without currency effects, it would have risen by 2%) to $6.05 billion. Global comps increased by 3.8% -- rising 2.5% in the U.S., an impressive 5.8% in Europe, and 2.2% in the Asia/Pacific, Middle East, and Africa segment. The company credited its new Angus Third Pounders and McCafe espresso drinks for drumming up success in America.
As if that's not appetizing enough, McDonald's also boosted its quarterly cash dividend by 10% to $0.55 per share (or $2.20 annually), which goes into effect in the fourth quarter. McDonald's has been delivering both impressive operational growth and a tasty payout.
Stocks like McDonald's make a great case for buy-and-hold investing. The company has competed admirably against fast-food rivals such as Burger King
McDonald's bargain-priced offerings give it an edge in difficult times, not unlike the advantage enjoyed by discount retail giant Wal-Mart Stores
Last quarter, many investors seemed to choke on their Big Macs, but I still gave Mickey D's the thumbs-up for the long term. The market's been doing some odd things lately; many higher-risk stocks have rallied, becoming overpriced. But McDonald's, a well-run and venerated blue-chip that pays an increasing dividend, remains one of the safer bets in a crazy market. Bon appétit.
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