Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Thursday, April 5, 2007

Article Excerpt

MCDONALD’S CORP. $45.78, New York symbol MCD, has sold only Coca-Cola soft drinks at its restaurants since 1955. But demand for carbonated sodas has weakened in the past few years, as consumers switch to healthier drinks. So McDonald’s has begun selling non-carbonated drinks from PepsiCo at some of its outlets. PEPSICO INC. $63.68, New York symbol PEP, drinks now sold at these McDonald’s outlets include Gatorade sport drinks, Tropicana fruit juices and Lipton iced teas. The deal does not cover Pepsi or Diet Pepsi colas, or fountain drinks. If this pilot project succeeds, McDonald’s will probably expand it to other stores. We see both McDonald’s and PepsiCo as buys. DEL MONTE FOODS CO. $11.53, New York symbol DLM, has recalled some of its pet food brands due to possible contamination of ingredients it imported from China. The company did not reveal the cost of the recall, but the recalled products account for less than 0.1% of its annual pet food production. This seems…