McDonald’s: More Gains Ahead

Article Excerpt

McDonald’s stock ran into trouble a few years ago during the European mad cow scare, and got as low as $12 in 2003. The sudden death of two chief executives within one year also added to the company’s uncertainty. Since then, however, the company has done a good job improving the quality of its food and the cleanliness of its stores. A new picture-based menu ordering system has improved ordering accuracy by 33% in early tests. Other initiatives such as installing flat-screen TVs and DVD rental machines are also helping to lure more customers into its stores. The stock has more than tripled in the past three years. But we feel it still has further gains to come. MCDONALD’S CORP. $42 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; WSSF Rating: Above average) operates over 30,000 fast-food restaurants in over 120 countries, which sell mainly hamburgers, chicken, french fries and soft drinks. Foreign operations account for two-thirds of its sales and one-third…

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