McDonald’s focuses on its strengths

Article Excerpt

McDonald’s stock has gained 92% in the past five years. That compares to just 43% for the S&P 500 Index. The fast-food chain’s gains are mainly due to its plan to shift responsibility for the operation of its restaurants to franchisees. That lets the company focus on new menu items and improved service. We feel McDonald’s still has lots of room to rise, especially considering its new services, such as home delivery and mobile ordering, have strong appeal among millennials. MCDONALD’S CORP. $196 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 763.6 million; Market cap: $149.7 billion; Price-to-sales ratio: 7.2; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.mcdonalds.com) operates 37,931 fast-food restaurants in 120 countries. Its menu is varied, but the chain is best known for its hamburgers and french fries. Overseas markets account for about 65% of overall sales. The company continues to benefit from its 2017 multi-pronged growth plan, which mainly involves improving the quality of its food and speeding…