Ask an expert: McDonald's recent decline
MSN Money's Charley Blaine discusses the recent weakness in the stock price of the world's largest fast food restaurant.
In this video, MSN Money's Charley Blaine explains what's behind McDonald's recent decline, as well as discusses other opportunities in the sector. There has been no shortage of news about McDonald's lately. From pushing stores to remain open Christmas Day to allegations in China it was overfeeding antiviral drugs and growth hormones into the chickens it sells in its stores there. But these don't explain the stock's poor performance.
Blaine explains that McDonald's has been hit by several factors, not the least of which are higher gas prices early in the year and consumers' concerns about going out; the weak economic situation in Europe; and increasing competition from Yum Brands' (YUM) KFC among others.
Despite all this, McDonald's retains a positive outlook, much of it stemming from the way it's conducting its operations, which have proved themselves so far, including controlling of stores, supply chain and consistency. The dividends only make it even more attractive.
And what are other promising investments in the sector? Blaine goes over several chains that still haven't taken advantage of the many opportunities, mostly internationally.
The discussion about McDonald's and the restaurant sector continues over in MSN Money's Facebook community.
More from Top Stocks
1. poor service: I agree with the other posts that they don't pay attention. I ordered extra pickles and sauce on my McRib (yeah...I know it's bad, but I was craving it) and there was no extra sauce (dry as a bone) and the same two measily pickles it usually comes with. No extra pickles and no sauce and I was charged for it?! This happened two times at two different locations. I was already at home when I saw this and it was too much of a hassle to go back.
2. The bathrooms are absolutely filthy and disgusting. I walked in and walked right out and vowed to never use a McDonald's restroom again. It's not just at the ones that are near the rest stops that are dirty, but even the ones in the city. How dirty their bathrooms are ... is a reflection of how dirty their kitchen must be. Ewwhh! Although, if you compare it to the bathrooms in some foreign countries...I would be happy any day to see a McDonald's bathroom.
3. They are being cheap on the sauces. If I order a 20 piece nugget meal, I think I should NOT be charged for asking one extra BBQ sauce when they only gave me one. One sauce is for the small order. C'mon now.
To also be fair: The positives - They have a play area for kids, the outside building looks new and clean, & you can always find one down the street.
McDonald's, I hope you read these comments to better your company.
I have stopped going there because of the cost and also not feeling well after eating my $6- dollar
VALUE MEAL. Just because it is fast food it does not have to be bad food.
It is so sad, what is happening in this country. no one cares about anything! poor service everywhere !
poor service at mcd. you cannot get what you order at the drive thru. parts of order wrong, silverware left out, ect. cold coffee! no need to talk to mgr. they are trying to work with mentally doped up people! i have to pull up from the window and check order everytime. at least half of time i have to go in and get what is left out. i know i am the stupid one for shopping at mcd.
The reason we quit going to McD is because the prices are way to high & out of line.
We go to Steak & Shake $3.99 for single steakburger & fries or $4.99 for double steakburger and fries.
If you get there at special times their very good shakes are half price or 2 for 1.
THATS WHY MCDONALDS READ THE ABOVE.
You people are all illiterate hypocryts who can't spell.! You know what they sell and what it costs before you go there. It is easy to bash something on this public forum. Look at it like listening to the radio, if you don't like it then don't listen. You go to a drive thru restaurant expecting a gourmet meal in 20 seconds and when that doesn't happen you complain here! Yes you can prepare your burger and fries at home yourself, but.....You will spend for hamburg and fries, use energy to cook, and then clean the dishes when done! After paying for food, energy, and labor to prepare and clean-up it will cost more!
I have been going to Macdonalds for over 40 years and I am not an unhealthy slob as many of you suggest I should be from eating their food. The fact is that Americans are lazy, greedy, and arrogant! You want more than you paid for at a cost that only comes from cheap labor and then you want to complain for your own laziness.
When you go for fast food, you get what you went for ...fast cheaply prepared food. Quit your bellyachin!!!!
It is a simple solution. McDonald's works because people make it work..from the happy meal kiddies to the older generation and even the whiners. Happy Holidays and best wishes for a new attitude :)
What's wrong with Mickey D's? Where should I start? How about selling and serving $hit to the world? We just go down hill from there.
Like all fast food restaurants, it is easy, quick and a decent price for the convenience.
I'm amazed at all these self righteous people bashing an icon....a place that almost everyone has eaten at. Now as far as taste, quality and selection, I prefer Wendy's....but I wish Wendys would keep their fish sandwich on their menu all year.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
While the former looks to expand its snack and soda exposure, the latter struggles to stabilize management.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.