McDonald’s plans spur growth

Article Excerpt

The fast-food industry faces several long-term challenges. These include the consumer shift to more nutritious foods and new laws to increase minimum wage rates. McDonald’s has a history of adapting to changing trends. The new plan is to increase sales through better food and customer service. It’s already paying off. The company is also cutting its costs by transferring more of its outlets to franchisees. McDonald’s will use most of the savings for share buybacks and dividends. That should continue to push the stock higher. MCDONALD’S CORP. $123 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 877.8 million; Market cap: $108.0 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest operator of fast-food restaurants, with 36,500 outlets in 120 countries. It serves a wide variety of food, but is best known for its hamburgers and french fries. The company’s sales rose 4.1%, from $27.0 billion in 2011 to $28.1 billion in…