McDonalds (MCD)

[winston]

AN EXTRAORDINARY THREE-YEAR CHART

Another "survivor" stock for you...

Yesterday, we introduced Royal Gold as one of the few companies in the world that weathered the 2008 credit crisis... and managed to reach a new high soon after. It takes an extraordinary company in an extraordinary situation to survive that historic selloff and then thrive.

Today's survivor easily qualifies as extraordinary. It's one of the most successful businesses of all time, and bank blowups won't dent demand for its products. It's McDonald's (MCD).

Kudos to Tom Dyson for his insight on McDonald's

back in June 2008. Tom pegged the company as one of the best stocks to own during tough economic times. McDonald's sells some of the cheapest food you can find anywhere... which comes in high demand during a recession.

As Tom predicted, McDonald's profits and share price held steady during the crisis... and the stock now sits at its all-time high. The crisis selloff couldn't even take McDonald's down to a 2008 low. Tom's 12% Letter readers are up 64% on this dividend and compounding machine.

Source: Daily Wealth

[kennynah]

McDonald's profit beats forecasts
NEW YORK
Wed Apr 21, 2010 9:05am EDT

(Reuters) - McDonald's Corp (MCD.N) reported quarterly profit on Wednesday that beat analysts' forecasts as its U.S. business picked up in March.

The world's largest fast-food chain also said global sales at established restaurants rose 4.2 percent for the quarter.

Sales at U.S. restaurants open at least 13 months rose 4.2 percent in March, while same-store sales in Europe rose 5.9 percent and the Asia-Pacific, Middle East and Africa region reported a rise of 2.8 percent.

First-quarter profit was $1.09 billion, or $1.00 per share, up from $979.5 million, or 87 cents a share, a year earlier.

Excluding items, McDonald's earned $1.03 a share. On that basis, analysts' average forecast had called for a profit of 96 cents per share, according to Thomson Reuters I/B/E/S.

Revenue, which includes sales from company-owned restaurants plus royalties from franchisees and other fees, rose 10.5 percent to $5.61 billion.

Shares of McDonald's were up 6 cents in premarket trading from a closing price of $70.34 Tuesday on the New York Stock Exchange.

(Reporting by Phil Wahba in New York, with additional reporting by Lisa Baertlein in Los Angeles, editing by Gerald E. McCormick)

[winston]

WHAT YOU NEED TO BUY TO BUILD A LIFETIME INCOME MACHINE

We're continuing "income week" in Market Notes with a stock you're unlikely to consider if you're looking for high dividends... McDonald's.

Ninety-nine out of 100 income-focused investors will scoff at the fast-food giant's "paltry" 3.2% annual yield. But consider this: On average, McDonald's doubles its dividend every four years. If you buy today and tuck it away for a decade, you'll be earning more than 10% on your original investment.

Still not enough? If you don't need the income right away, reinvest those dividends, and you'll come out after 10 years with an even higher yield – on an American blue-chip stock that's guaranteed to keep cranking out burgers, fries... and the cash flow it needs to pay those double-digit dividends for decades to come.

McDonald's isn't the only "stealth" dividend stock you can hold for a lifetime. All you need to look for when you're building your own income machine is a recession-resistant business model... and a long history of increasing dividends. Wal-Mart, Microsoft, and Procter & Gamble fit the criteria. So does cigarette maker Altria: If the company maintains its current dividend growth rate, a 7% yield could feel more like 27% after a decade.

– Tom Dyson

Source: Daily Wealth

[kennynah]

McDonald's makes history with Hong Kong Bond offering.... RTT News

[helios]

Heard from a friend that McDonald's business is real estate. In the US, they own the properties which they rent to the people running McDonald's franchise. I wonder if it is also the case in other countries.

It is an interesting business model and is in my watchlist.

Somebody said that the MCD business was started in war-world times - the 1950's. At that inception, U.S. was experiencing a distinct shift from rural/ sub-urban to urban. These families had different requirements, young children with families who wanted "good cheap fastfood" compared to those bistro.

Lesson learnt is scalability ...

[LenaHuat]

CNN has been running a v short docu on the Burger University of MCD.

[kennynah]

Heard from a friend that McDonald's business is real estate. In the US, they own the properties which they rent to the people running McDonald's franchise. I wonder if it is also the case in other countries.

It is an interesting business model and is in my watchlist.

it is a fact...

they are landlords....and work on their marketing campaigns....and the rest of the world, works for them...

[winston]

McDonald's 3Q net income jumps 10 percent

McDonald's frappes, smoothies and dollar menu drew in more customers in the third quarter, pushing the world's largest burger chain's net income up 10 percent.

Results beat estimates and shares rose in early trading Thursday, breaking the company's all-time high.

McDonald's Corp. earned $1.39 billion, or $1.29 per share, in the quarter ending Sept. 30, up from $1.26 billion or $1.15 per share last year.

Revenue rose 4.3 percent to $6.3 billion.

Analysts expected the company to earn $1.25 per share on revenue of $6.23 billion, according to Thomson Reuters.

The tough economy has weakened people's appetites for eating out. But McDonald's, based in Oak Brook, Ill., has been outperforming the industry by giving people reasons to keep visiting its stores.

The company is creating new products, such as smoothies and frappes, released this summer, to keep diners interested. It's also focusing on value — particularly its dollar menu — to appeal to people's wallets, not just their taste buds.

Revenue at stores around the world open at least 13 months rose 6 percent, led by 8.1 percent growth in Africa, Asia/Pacific and the Middle East. In the U.S. the figure rose 5 percent, while in Europe it rose 4.1 percent.

The figure is important for restaurants because it measures growth at existing locations.

The company said in Europe, results were helped by expanded hours and updated restaurants. In the U.S. people continued to respond well to the new drink options and value menu.

In other parts of the world, the same focus on value coupled with limited-time menu items drew in customers.

CEO Jim Skinner said the company expects revenue at locations open at least 13 months to grow between 5 percent and 6 percent in October.

Shares rose $1.39 to $78.80 in premarket trading, beating the previous 52-week high of $78.14.

Source: AP News

[winston]

Not vested. Coincidentally, I had a Big Mac for lunch today

McDonald's December sales disappoint; shares fall

DETROIT (Reuters) - McDonald's Corp <MCD.N> reported weaker-than-expected December sales at established U.S. and European restaurants as poor weather hurt demand, and said its food costs would rise in 2011.

Shares of the world's largest hamburger chain fell about 1.7 percent in premarket trading on Monday as the company also reported a fourth-quarter profit in line with expectations.

McDonald's said global sales at restaurants open at least 13 months rose 3.7 percent overall in December. They gained 2.6 percent in the United States, down 0.6 percent in Europe and rose 8.9 percent for Asia-Pacific, Middle East and Africa.

Wall Street had expected December same-restaurant sales to be up 3.9 percent in the United States, up 3.4 percent in Europe and gain 5.7 percent in APMEA, according to Janney analyst Mark Kalinowski.

For January, the company expects global same-restaurant sales to increase in a range of 4 percent to 5 percent.

Net income in the fourth quarter rose to $1.24 billion, or $1.16 a share, compared with $1.22 billion, or $1.11 a share, in the year-earlier quarter. The profit matched what analysts polled Thomson Reuters I/B/E/S had expected.

McDonald's shares dropped to $73.73 in premarket trading from Friday's closing price of $75.01 on the New York Stock Exchange.

Source: Reuters US Online Report Business News

[winston]

Not vested

McDonald's January sales rise 5.3 percent

DETROIT (Reuters) - McDonald's Corp <MCD.N> on Tuesday said global sales at established restaurants rose more than expected in every region except the United States.

Worldwide January sales at restaurants open at least 13 months were up 5.3 percent. In the United States, where high unemployment has taken a bite out of sales at fast-food chains, sales were up 3.1 percent.

Wall Street expected global sales and U.S. sales each to rise 4.4 percent. The U.S. market accounts for about 35 percent of McDonald's revenue.

Same-restaurant sales in Europe were up 7.0 percent, while sales in the Asia/Pacific, Middle East and Africa (APMEA) unit rose 5.2 percent.

Analysts had expected Europe sales to rise 3.7 percent and APMEA sales to jump 4.6 percent. Europe contributes around 40 percent of McDonald's total revenue.

Source: Reuters US Online Report Business News