Investing is not a sure fire way to make money. In fact, if you don’t know what you are doing you can lose some, or all of the money that you invest. To help increase your chances of making a profit you should conduct at least a basic investigation of the company that you are interested in before you buy its stock.
Free Basic Stock Performance Review: McDonald’s Corp. (MCD)
McDonald’s Corp. (MCD)
Mcdonalds Plaza
2111 McDonald’s Drive
Oak Brook, Illinois 60523
(630) 623-3000 phone number
(630) 623-5211 fax number
http://www.mcdonalds.com
What McDonald’s Corp. (MCD) Does
The first step in your company investigation should be to determine what the company does. In the case of McDonald’s Corp the answer is fairly simple. McDonald’s Corp. is a fast food retailer. They offer a variety of sandwich options, salads, desserts, and beverages. This company also owns and operates Boston Market restaurants and Chipotle Mexican Grill restaurants. As of July 2006 this company owned and operated over 31,000 restaurants, and had a presence in about 100 countries.
52 Week Performance Review
During the 52 week period that ended on 08/25/06, MCD’s stock value fluctuated between 31.31 and 36.75. On 08/25/06 the value of MCD was between 35.16 per share and 35.69 per share. MCD is experiencing a mild growth trend and the value of this stock is expected to climb to about 40.75 per share within the next year.
Historical Performance Review
Over the last five years MCD has experienced a major depression in its stock value as well as a healthy recovery period. Between 2002 and 2003 the value of MCD declined from about $27 per share to about $16 per share. The stock continued to decline into 2003, however, by January 2004 the stock had climbed to a value of $24 per share. The stock continued to improve and by January 2005 it had reached a value of about $33 per share. Between 2005 and 2006 the stock finally reached $35 per share. Since the beginning of 2006 the stock has fluctuated but it has not made much headway.
Strengths of MCD
The biggest strength that MCD has is that it is one of the most recognized brand names in the world. They have a large presence around the world and they are an accepted brand in dozens of countries. This stock also pays a dividend of .67 per share. This too attests to the strength of the company. Last quarter this company also experienced a 9.4 percent revenue growth. They are also have a gross profit of about $6.32 billion, as stated on 08/25/06.
Weaknesses of MCD
The first weakness that MCD has is that it has a high debt to cash ratio. Their current total debt balance as of 08/25/06 was $9.51 billion, and their total cash balance as of 08/25/06 was $3.29 billion. Another weakness that this company has is that they has a lot of competition from local restaurants and chain restaurants.
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