Monday, January 28, 2008

5 Reasons To Buy McDonald's Right Now



Here are 5 reasons why you want to buy McDonald’s (MCD) off the back of today’s irrational sell-off:

  1. The flat same store sales for December will not be repeated as MCD guided to a 1.5% comp for January.
  2. Fiscal and monetary stimulus will benefit MCD
  3. The stock has corrected 20% from where I already alerted long term investors to take some of the stock off the table
  4. Growth in China
  5. Expansion of McCafe concept in Germany which I believe will eventually be MCD direct competition to Starbucks (SBUX) in the US
I added stock on today's pullback.

At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of MCD --- although positions can change at any time.

3 comments:

Anonymous said...

McDonalds McCafe is a good try at offering gourmet coffee, but will never represent a serious threat to Starbucks. The McCafe coffee is not gourmet quality and the stores don't offer real ambiance. Nice try though by McD.

Anonymous said...

It doesn't have to compete taste wise.

Open your eyes.

I would much rather go to McDonalds because I can go get breakfast and a cup of coffee that is supposed to be cometition to Starbux.

It is only going to be competition to Starbucks because more people are going to buy coffee from McDonald now while getting food, rather than going out of there way to a remote Starbucks and getting just coffee, or adding on an over priced food item.

Anonymous said...

i enjoy everything the the McDonald's McCafe coffees except the goofy name