McDonald's: Investors aren't lovin' it

The company reported earnings Monday morning, and results were a mixed bag.

By Motley Fool Investor Beat Oct 21, 2013 12:39PM
Fast-food colossus McDonald's (MCD) reported third-quarter earnings Monday morning, and it proved to be a mixed bag. Investors bid the stock down at the open, but shares have mostly recovered since.

McDonald's earnings per share topped estimates, but revenue came in below what analysts were expecting. As Motley Fool analyst Jason Moser sees it, it was a middling report. Performance in Asia was less than stellar, and the company's forward guidance was also uninspiring.
Jason believes that one of McDonald's biggest challenges comes from secular changes in consumers' eating habits. McDonald's is trying to address changing food-consumption habits by putting an increased emphasis on somewhat healthier items like salads. However, McDonald's doesn't see strong sales for those items.A sign outside the fast-food chain McDonald

Jason sees McDonald's as an income investor play. The stock has a 3.4% dividend yield, and it holds a coveted position on the S&P 500's Dividend Aristocrats list.

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1Comment
Oct 21, 2013 4:21PM
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I would rather get a bag of ramen from an Asian supermarket for 50 cents. It's delicious and satisfying although not very healthy. But then again, eating at McD is not healthy neither. You can also make a nice sandwich yourself and save.
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