From Cabot Wealth Advisory 5/2/16 Sign up for Cabot Wealth Advisory—it’s free!
Last but not least is the king of burgers, McDonald’s (MCD). Like Wendy’s, McDonald’s has been coping with declining revenues (seven quarters in a row!). And like Wendy’s, it’s managed to grow earnings over the past three quarters by cutting costs. But unlike Wendy’s, McDonald’s actually has a strong chart!
The McDonald’s chart is telling us that investors believe management’s recent moves (to all-day breakfast offerings and the removal of artificial ingredients from Chicken McNuggets, for example) will bear fruit, that the stock’s valuation (a forward P/E ratio of 23) is reasonable, and that the 2.8% dividend is worth hanging around for.
For risk-averse investors, it’s worth checking out. Click here for more information on Cabot Stock of the Month.
One McDonald's Plaza
Oak Brook, Illinois 60523
|Index Membership: N/A
Full Time Employees: 420,000