InvestIdeas

TOM'S AMAZING "RECESSION PROOF" INVESTMENT

In today's market notes, we take a look at a "big idea" introduced by our good friend Tom Dyson (now of The Palm Beach Letter) and say, "Well played, sir."

More than three years ago, Tom introduced DailyWealth readers to the idea of buying McDonald's and Wal-Mart to "recession proof" your stock portfolio.

Both McDonald's and Wal-Mart are strong businesses that treat their shareholders well with steady dividends. In a recession, folks are more likely to shop at Wal-Mart than Nordstrom. And they're more likely to pass on $50 steak dinners… while sticking with simple pleasures like $2 hamburgers.

Our chart below shows how Tom was right on. It displays the past three years of trading in shares of McDonald's.

As you can see, despite the great credit crash of 2008… the recession of 2009… the "flash crash" of April 2010… and last month's "mini-panic," McDonald's has steadily advanced to a new all-time high… while paying out ever-increasing dividends. Like Phillip Morris, what McDonald's does "ain't pretty"… but it works.

Source: Daily Wealth

not vested

McDonald’s August Same-Store Sales Up 3.5 Percent

CHICAGO (Reuters) - McDonald's Corp <MCD.N> reported a 3.5 percent rise in global August sales at established restaurants on Friday, led by growth in the United States, its second-largest market for revenue.

The world's largest hamburger chain said sales at restaurants open at least 13 months rose 3.9 percent in the United States and 2.7 percent in Europe, its largest market, while falling 0.3 percent in Asia/Pacific, Middle East and Africa.

McDonald's shares fell 1.8 percent to $87.00 in premarket trading.

Source: Reuters US Online

McDonald's profit, September sales beat expectations

(Reuters) - McDonald's Corp <MCD.N> reported a higher-than-expected quarterly profit on Friday, helped by stronger-than-expected sales at established restaurants in September, and its shares rose 3 percent.

McDonald's has been taking market share from other fast-food chains for months. It has benefited from improving food quality, adding Dollar Menu items and introducing high-margin beverages such as coffee and fruit smoothies to broaden its appeal beyond the young men who account for the biggest share of sales at most other fast-food chains.

The company also is sprucing up restaurants in Europe and the United States, which has helped boost sales.

The world's biggest fast-food chain said third-quarter net income rose to $1.51 billion, or $1.45 per share, from $1.39 billion, or $1.29 per share, a year earlier.

Analysts on average forecast $1.43 a share, according to Thomson Reuters I/B/E/S.

Earnings per share rose more than 12 percent, but were up only about 6 percent excluding foreign currency benefits.

Revenue rose 13.8 percent to $7.17 billion. Sales at established restaurants were up 5 percent globally, with increases of 4.4 percent in the United States, 4.9 percent in Europe and 3.4 percent in the Asia/Pacific, Middle East and Africa region.

Sales at established restaurants rose 6.6 percent in September, while analysts on average expected a 3.6 percent increase.

U.S. same-restaurant sales rose 5 percent, while Europe was up 6.9 percent and Asia/Pacific, Middle East and Africa had a 6.8 percent increase.

The company forecast a 4 percent to 5 percent increase in sales at established restaurants in October.

McDonald's shares rose 3 percent to $91.69 in premarket trading.

Source: Reuters US Online Report Business News

when i was a child.. i couldn't put this double layered gigantic size big mac into my mouth...

but later, perhaps i grew, the big mac seemed much smaller...

did you have the same experience??

It is thinner. And the cheese hardly covers the entire bread.

Coffee taste is weak (heard from friends that the US version is better).

Same goes for the tea (CMI)

oh..it's silly to pay for a cup of tea ... they use the cheapest tea bags...

might as well just bring your own tea bag and pay for the hot water...

their coffee is lousy... nothing beats those freshly brewed ones from our local kopitiams.. the aroma is best... blue mountain, or cat pooh oso cannot compare...

i suppose, quarter pounders are the only ones they can't shrink in size without deceiving the consumers

Just paper trade. Would you trade this vertical call spread? What do you think?

Spread_Description Bid Ask
Dec 11 97.5 / 100 C 0.26 0.3
Dec 11 97.5 C 0.43 0.45
Dec 11 100 C 0.15 0.17

Max_Return 220
Max_Risk 30

Stock price to move up 7.19%, premium gain is 733%

not vested

McDonald's (MCD) may be in focus after the fast food giant reported a 5.5 percent increase in global comparable store sales in October.

The company said U.S. comparable store sales rose by 5.2 percent.

Source: RTT

DAILYWEALTH READERS PROFIT FROM ANOTHER "BASICS" RALLY

If there's one point we hope we've driven home this year, it's how well "owning the basics" works in a tough market… or any market.

Regular DailyWealth readers have read about our "basics" idea dozens of times. The idea is, for long-term investors – especially folks who want exposure to the growing economies of Asia, Africa, and Latin America – boring, basic, dividend-paying companies are the way to go.

These companies sell things like soda, cigarettes, beer, and Band-Aids. It's in the "basics" business that you can find companies with powerful brand names producing huge and predictable cash flows. After all, no new gadget is going to make having a beer after work obsolete.

Just after the August panic, we highlighted how many of our favorite "basic" stocks sailed through the crisis with minimal share price damage. They simply kept selling their products every day and kept paying rising dividends. And just this week, several have staged major upside breakouts.

For an example of this price strength, we note McDonald's… a stock our colleague Tom Dyson pegged as an ultimate "recession-proof" company years ago.

McDonald's isn't inventing the next smartphone or social network. It simply sells burgers and pays dividends. And as you can see, this strategy is working. McDonald's just hit a fresh 52-week high.

www.dailywealth.com