Buy for low-risk global growth

Article Excerpt

McDonald’s continues to benefit from its ongoing plan to serve better food and upgrade its restaurants. Since 2003, this strategy has helped the company increase its annual sales by 3% to 5%. Its yearly profits have grown at a much faster pace of 6% to 7%. These gains may seem modest compared to fast-growing technology companies, like Google. However, McDonald’s rising sales and profits have caused the stock to soar by nearly 590% in the past decade. During the same period, the S&P 500 Index rose just 81%. Even after this big gain, McDonald’s stock continues to trade at an attractive multiple to the company’s earnings. The company also offers a great way for conservative investors to gain international exposure, particularly as fast food becomes an increasingly affordable luxury in developing countries. MCDONALD’S CORP. $94 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.0 billion; Market cap: $94.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 3.3%; TSINetwork Rating:…