McDonald's beat the street's estimates again this morning.The company posted strong profits along with solid sales.McDonald's third-quarter net income rose to $1.26 billion, or $1.15 a share, from $1.19 billion, or $1.05 a share, a year earlier. In the past year, the stock has been relatively flat despite rising earnings in a time where just about every business is feeling the effects of a tough economic environment.
McDonald's Corporation develops operates franchises and services a worldwide system of restaurants that prepare assemble package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or under the terms of franchise arrangements by franchisees who are independent third parties or by affiliates operating under joint-venture agreements between the company and local business people. Mcdonald's Corp. has a market cap of $63.67 billion; its shares were traded at around $58.33 with a P/E ratio of 15.6 and P/S ratio of 2.7. The dividend yield of Mcdonald's Corp. stocks is 3.4%. Mcdonald's Corp. had an annual average earning growth of 7.2% over the past 10 years
6 Gurus Initiated Positions in MCD:
Steve Mandel bought 8,453,315 shares in the quarter that ended on 06/30/2009, which is 6.59% of the $7.37 billion portfolio of Lone Pine Capital.
Bill Ackman bought 2,400,000 shares in the quarter that ended on 06/30/2009, which is 6.08% of the $2.27 billion portfolio of Pershing Square Capital Management, L.P..
Ken Heebner bought 1,137,600 shares in the quarter that ended on 06/30/2009, which is 1.07% of the $6.11 billion portfolio of CAPITAL GROWTH MANAGEMENT LP.
Richard Perry bought 250,000 shares in the quarter that ended on 06/30/2009, which is 1.05% of the $1.36 billion portfolio of Perry Capital
David Winters bought 45,750 shares in the quarter that ended on 06/30/2009, which is 0.69% of the $382 million portfolio of Wintergreen Advisors.
Tom Gayner bought 24,900 shares in the quarter that ended on 06/30/2009, which is 0.13% of the $1.11 billion portfolio of Markel Gayner Asset Management Corp. 1 Guru Increased Positions in MCD:
Jean-Marie Eveillard owns 123,960 shares as of 06/30/2009, an increase of 25.26% from the previous quarter.
This position accounts for 0.08% of the $8.91 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.
6 Gurus Kept Positions in MCD Unchanged or Slightly Adjusted: Bill Gates owns 6,867,500 shares as of 06/30/2009, which accounts for 5.27% of the $7.49 billion portfolio of Bill & Melinda Gates Foundation Trust.
Robert Olstein owns 143,350 shares as of 06/30/2009, which accounts for 1.76% of the $467 million portfolio of Olstein Financial Alert Fund.
Bill Nygren owns 594,000 shares as of 06/30/2009, which accounts for 1.32% of the $2.04 billion portfolio of Oak Mark Fund.
Ruane Cunniff owns 75,539 shares as of 06/30/2009, which accounts for 0.06% of the $6.9 billion portfolio of Ruane & Cunniff & Goldfarb Inc.
Richard Aster Jr owns 6,500 shares as of 06/30/2009, which accounts for 0.02% of the $1.98 billion portfolio of Meridian Fund.
Ron Baron owns 78,000 shares as of 06/30/2009, which accounts for 0.04% of the $11.99 billion portfolio of Baron Funds.
1 Guru Reduced Positions in MCD:
Dodge & Cox owns 505,252 shares as of 06/30/2009, a decrease of 27.68% of from the previous quarter. This position accounts for 0.04% of the $66.88 billion portfolio of Dodge & Cox.
1 Guru Sold Out MCD: Kenneth Fisher sold out his holdings in the quarter that ended on 06/30/2009.
I'm confident in using a 10 yr discounted cash flow on McDonalds as its a company with cosistant operating history and its future looks great as it expands into emerging markets. From 2003-2008, the company experienced growth as it went back to basics after it slumped at the beginning of the millennium. In the same period (2003-2008), McDonald's had cash from ops. growth of 12.6%, something which I'm confident it could accomplish in the next decade. But, I want to be on the cautious side and use its CROIC of 9.3 as my growth rate. McDonald's seems to be fairly valued at this time, I will add it to my watch list.
McDonald's Corporation develops operates franchises and services a worldwide system of restaurants that prepare assemble package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or under the terms of franchise arrangements by franchisees who are independent third parties or by affiliates operating under joint-venture agreements between the company and local business people. Mcdonald's Corp. has a market cap of $63.67 billion; its shares were traded at around $58.33 with a P/E ratio of 15.6 and P/S ratio of 2.7. The dividend yield of Mcdonald's Corp. stocks is 3.4%. Mcdonald's Corp. had an annual average earning growth of 7.2% over the past 10 years
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Gurus' Positions with MCD
McDonald's Corp. is owned by 14 Gurus.6 Gurus Initiated Positions in MCD:
Steve Mandel bought 8,453,315 shares in the quarter that ended on 06/30/2009, which is 6.59% of the $7.37 billion portfolio of Lone Pine Capital.
Bill Ackman bought 2,400,000 shares in the quarter that ended on 06/30/2009, which is 6.08% of the $2.27 billion portfolio of Pershing Square Capital Management, L.P..
Ken Heebner bought 1,137,600 shares in the quarter that ended on 06/30/2009, which is 1.07% of the $6.11 billion portfolio of CAPITAL GROWTH MANAGEMENT LP.
Richard Perry bought 250,000 shares in the quarter that ended on 06/30/2009, which is 1.05% of the $1.36 billion portfolio of Perry Capital
David Winters bought 45,750 shares in the quarter that ended on 06/30/2009, which is 0.69% of the $382 million portfolio of Wintergreen Advisors.
Tom Gayner bought 24,900 shares in the quarter that ended on 06/30/2009, which is 0.13% of the $1.11 billion portfolio of Markel Gayner Asset Management Corp. 1 Guru Increased Positions in MCD:
Jean-Marie Eveillard owns 123,960 shares as of 06/30/2009, an increase of 25.26% from the previous quarter.
This position accounts for 0.08% of the $8.91 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC.
6 Gurus Kept Positions in MCD Unchanged or Slightly Adjusted: Bill Gates owns 6,867,500 shares as of 06/30/2009, which accounts for 5.27% of the $7.49 billion portfolio of Bill & Melinda Gates Foundation Trust.
Robert Olstein owns 143,350 shares as of 06/30/2009, which accounts for 1.76% of the $467 million portfolio of Olstein Financial Alert Fund.
Bill Nygren owns 594,000 shares as of 06/30/2009, which accounts for 1.32% of the $2.04 billion portfolio of Oak Mark Fund.
Ruane Cunniff owns 75,539 shares as of 06/30/2009, which accounts for 0.06% of the $6.9 billion portfolio of Ruane & Cunniff & Goldfarb Inc.
Richard Aster Jr owns 6,500 shares as of 06/30/2009, which accounts for 0.02% of the $1.98 billion portfolio of Meridian Fund.
Ron Baron owns 78,000 shares as of 06/30/2009, which accounts for 0.04% of the $11.99 billion portfolio of Baron Funds.
1 Guru Reduced Positions in MCD:
Dodge & Cox owns 505,252 shares as of 06/30/2009, a decrease of 27.68% of from the previous quarter. This position accounts for 0.04% of the $66.88 billion portfolio of Dodge & Cox.
1 Guru Sold Out MCD: Kenneth Fisher sold out his holdings in the quarter that ended on 06/30/2009.
Insiders' Positions with MCD
- Sell:: Vice Chairman and CEO on 05/12/2009 James A Skinner sold 150,000 shares of MCD stock at the average price of 53.56, the price of the stock has increased by 8.91% since
Insiders' Positions with MCD
- Buy:: Director on 08/04/2009 John W Jr Rogers bought 500 shares of MCD stock at the average price of 55.01, the price of the stock has increased by 6.04% since
- Buy:: Director on 05/14/2009 Miles D White bought 5,000 shares of MCD stock at the average price of 53.97, the price of the stock has increased by 8.08% since
- Sell:: Corp Executive Vice President on 09/10/2009 Jeffrey P Stratton sold 2,500 shares of MCD stock at the average price of 54.84, the price of the stock has increased by 6.36% since
- Sell:: Corp Exec VP, Gen Coun, Secy on 06/10/2009 Gloria Santona sold 24,000 shares of MCD stock at the average price of 58.4, the price of the stock has decreased by 0.12% since
- Sell:: Director on 04/29/2009 Jeanne P Jackson sold 3,000 shares of MCD stock at the average price of 54.72, the price of the stock has increased by 6.6% since
I'm confident in using a 10 yr discounted cash flow on McDonalds as its a company with cosistant operating history and its future looks great as it expands into emerging markets. From 2003-2008, the company experienced growth as it went back to basics after it slumped at the beginning of the millennium. In the same period (2003-2008), McDonald's had cash from ops. growth of 12.6%, something which I'm confident it could accomplish in the next decade. But, I want to be on the cautious side and use its CROIC of 9.3 as my growth rate. McDonald's seems to be fairly valued at this time, I will add it to my watch list.
