MCD

McDonald's Corporation

Consumer


Presented:02/18/2015
Price:$94.19
Cap:$91.70B
Current Price:$313.34
Cap:$224.77B

Presented

Date02/18/2015
Price$94.19
Market Cap$91.70B
Ent Value$103.56B
P/E Ratio20.68x
Book Value$14.00
Div Yield3.6%
Shares O/S973.20M
Ave Daily Vol7,050,000
Short Int1.19%

Current

Price$313.34
Market Cap$224.77B
McDonald’s Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company’s restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. As of December 31, 2013, it operated 35,429 restaurants, including 28,691 franchised and 6,738 company-operated restaurants. The company was founded in 1940 and is based in Oak Brook, Illinois.

Publicly traded companies mentioned herein: McDonald’s Corporation (MCD), Restaurant Brands International Inc (QSR), The Wendy’s Company (WEN)

Highlights

The presenter is long shares of McDonald’s (MCD) and believes the timing might finally be right for one of the most recognized brands in the fast-food industry globally to take a look at the potential value that could be created by restructuring the business. He is long the stock and thinks the risk/ reward is favorable at current levels (mid-$90s). At the end of January (2015), following nearly a year of same store sales declines, MCD announced that Don Thompson was out as CEO, and chief brand officer Steve Easterbrook would take over (effective March 1st). Some shareholders are calling for a shake-up of the board, and the presenter sees a number of potential catalysts that could occur within 12 months that would drive anywhere from low teens to 37%+ upside.

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Idea Discussion

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