Burgers and Fries are always welcomed by people around the world. McDonald's (MCD) is the world's top fast-food company by sales, with more than 30,000 flagship restaurants in more than 100 countries. the company always beat Wall Street's expectation since last year. The reason behind this success in down economy due to a weak dollar and strong global sales.
In fact, the company's U.S. business has flat-lined, but abroad is profiting from weak dollar. However, the success of McDonald's McCafe business will help to sustain same-store sales growth until the dollar's weakness shifts exchange rate to company's favor. Obviously, MCD is gaining momentum over its competitors and should be reflect in its performance within the next few quarters. What's else ? Oh Yeah, McDonald's pays a handsome 3.5% dividend. That means you get Bang for the Buck.
1st McDonald's store in San Bernardino
Southern California, US in 1940
The Bottom Line: McDonald's is a great high dividend yield company with safety, income and healthy cash flow plus growth potential. And benefiting from current economic and currency trends. Stock now is at reasonable price with opportunity to grow. If you look at 5 years weekly graph, stock made a convergence triangle which ready to break out after recession diluted. With current Major Support at $52 and Resistance at $60, we would estimate to sell it within 1-3 years.
IME Suggested Buying Price: $53-57
IME Target Selling Price: $65-70
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