McDonald’s enters Vietnam

Article Excerpt

MCDONALD’S CORP. $97 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.0 billion; Market cap: $97.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.mcdonalds.com) plans to open its first restaurant in Vietnam next year. This new outlet will face strong competition from other U.S. fast food chains, such as KFC, Pizza Hut, Starbucks and Subway, that already operate in the country. However, the population is young and eager to embrace foreign brands. Moreover, the son-in-law of Vietnam’s prime minister will own and operate this franchise. That cuts the risk of this expansion. McDonald’s is a buy. buy…