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I believe McDonald's Corp. (NYSE: MCD) stock still has its best days ahead of it.
You won't hear it from the mainstream financial media, where a general sense of doom and gloom over the company seems to have settled in like a late summer thunder boomer because of a 3.7% downturn in global same-store August sales – the worst since 2003. Worse, that comes on the heels of a report showing global sales decreasing by 2.5% in July.
Naturally, this has generated a fresh wave of criticism. Millions of investors have evidently listened, judging from MCD stock's performance as the herd piles on – or "out," as the case may be. It's off 10% from a 52-week high set on May 2014. My personal favorite obituary came from a memo to clients from Janney Capital Markets, stating "That's Not Ketchup… It's Blood."
No doubt it's fashionable to pile up on McDonald's right now; truthfully, there are some troubling indications for the company's short-term outlook. But what's happening now is not the end of the world.
McDonald's stock still makes one heckuvan investment if you've got the right time frame. Subscribers who listened to me when I recommended it several years ago saw gains of more than 40% at the time of our strategic exit in August 2012. And those profits were made under circumstances very similar to today's – public ire and doubt.
So, at the risk of bringing back some of your most iconic childhood memories, let me explain to you why I'm lovin' it.
MCD Stock: A Slump from a Perfect Storm
When I see a sharp downturn in any trend – be it employment numbers, a stock's price, or a company's sales – one question immediately comes to mind: Is this based on the company's fundamentals… or are external factors at work here?
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.