McDonald’s ends Olympics deal

Article Excerpt

MCDONALD’S CORP. $157 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 815.1 million; Market cap: $128.0 billion; Price-to-sales ratio: 5.2; Dividend yield: 2.5%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest operator of fast-food restaurants, with 37,000 outlets in 120 countries. It serves a wide variety of food, but is best known for its hamburgers and French fries. The company has decided to end its sponsorship deal with the International Olympic Committee in 2018 instead of waiting for the contract to expire at the end of 2020. Athletes and health advocates have felt it was inappropriate for McDonalds, or any fast-food firm, to be a major sponsor of the Olympic Games, so quitting the deal should end that criticism. Moreover, the move will help the company with its plan to cut $500 million from its annual costs by the end of 2018. To put that goal in context, McDonald’s earned $1.4 billion, or $1.70 a share, in the…