Analysts Debate About McDonald's Corporation On CNBC

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Kevin Carol, a Stifel analyst,
said on CNBC
that investors should have McDonald's Corporation
MCD
as a part of their portfolio. He explained that McDonald's has a dividend yield of 3.5%, which is covered with strong cash flows. In the short term, the stock could face some head winds, but if you have a long term perspective in mind, this is the stock to own. The company has been around for a long time and it had transformed a lot during the time. Mr. Carol expects MCD to improve and sees the company's buyback strategy as a positive for the stock price. Lee Munson of Portfolio Asset management is not a fan of McDonald's. He said that McDonald's and Wal-Mart Stores, Inc.
WMT
went up in 2008 because the market knew there would be a lot of poor people who would buy cheap menus in McDonald's. Now, every person in the U.S. that finds a new job will be reluctant to spend the money on food that is not healthy. He added that McDonald's tried to fight competition with a healthier menu, but he believes that the people would rather pay couple of bucks more and go to Panera Bread Co
PNRA
, Starbucks Corporation
SBUX
or Chipotle Mexican Grill, Inc.
CMG
.
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Posted In: CNBCLong IdeasMediaTrading IdeasConsumer DiscretionaryKevin CarolLee MunsonPortfolio Asset ManagementRestaurantsStifel
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