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 (MCD 0.46%) 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. (1940) |
|
Market Cap |
$90.3 billion |
|
Industry |
Restaurants |
|
Trailing-12-Month Revenue |
$27.4 billion |
|
Management |
CEO Donald Thompson (since 2012) |
|
Return on Equity (Average, Past 3 Years) |
38.8% |
|
Cash/Debt |
$2.2 billion / $13.3 billion |
|
Dividend Yield |
3.5% |
|
Competitors |
Burger King Worldwide (BKW +0.00%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 6,179 members who have rated McDonald's believe the stock will outperform the S&P 500 going forward.
Earlier today, one of those Fools, kahnuacfa, succinctly summed up the bull case for our community:
McDonald's is a very mature fast food restaurant with significant growth opportunities outside of the United States. Especially in China, India, and the rest of Asia. While hamburgers will always be on the menu [McDonald's] will adapt as necessary in other markets.
[McDonald's] has been soft over the near-term. As the economy continues to slowly improve the company's results will become stronger. Better earnings results will improve the stock price.
I compute an Intrinsic Value for the shares in the $132-$137 per share range assuming an EBITDA growth rate in the 8.25%-8.75% range over the next five years.
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.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
