Analysts Debate About McDonald's Corporation On CNBC
Kevin Carol, a Stifel analyst, said on CNBC that investors should have McDonald's Corporation (NYSE: MCD) as a part of their portfolio. He explained that McDonald's has a dividend yield of 3.5 percet, 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. Carol expects McDonald's 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. (NYSE: 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. (NASDAQ: PNRA), Starbucks Corporation (NASDAQ: SBUX) or Chipotle Mexican Grill, Inc. (NYSE: CMG).
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