Just another challenge for “McD”

Article Excerpt

McDonald’s shares have moved sideways in the past few months, mainly because strong competition in the U.S. has hurt the company’s sales there. However, McDonald’s has overcome many challenges in its long history. It faces constant attacks from health, environmental and labour activists. Bad publicity from Super Size Me, a 2004 documentary in which the filmmaker ate nothing but McDonald’s food for a month and gained 24 pounds, also hurt the company’s image with consumers. Even so, the stock gained 244% in the past decade, compared to 67% for the S&P 500 Index. We believe McDonald’s U.S. sales will improve as the economy continues to recover. Meanwhile, its profits should keep rising in developing nations, where fast food is rapidly becoming an affordable luxury. MCDONALD’S CORP. $96 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 989.9 million; Market cap: $95.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.mcdonalds.com) operates 35,400 fast food restaurants…