While McDonaldâ€™s posted gains of more than 40% in 2011, its performance has been lackluster in 2012 so far. The stock has lost close to 5% in 2012 compared to the S&P 500 index, which has gained more than 10%. The news that CEO Jim Skinner will end his tenure in June 2012 has also created some uncertainty about the companyâ€™s future. However, given the companyâ€™s strong fundamentals, we believe the stock has a good case for at least for some modest upside. McDonaldâ€™s competes with Yum! Brands, Subway, Starbucks, Wendyâ€™s, Chipotle Mexican Grill, among many others.
1) Strong Business Model
McDonaldâ€™s restaurants worldwide are either franchised or company-operated. More than 80% of the 33,000 restaurants worldwide are franchised… read full post.