Has McDonald's Lost Its Touch?
Jun 15th 2012 4:50PM
Updated Jun 15th 2012 4:56PM
The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith discusses topics around the investing world.With McDonald's trading closer to its 52-week low than to its high, many investors are wondering whether the Golden Arches has lost its touch. This reaction just shows how quickly the market is willing to turn on incredibly well-managed and historically excellent companies, and it also shows how unjustified that shift can be. McDonald's continues to show incredible fundamentals, and its recent decline is an overreaction to same-store sales "misses" and misplaced concerns of a global slowdown. While the latter may be a reality, it won't hit McDonald's as badly as the market seems to think.
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At the time this article was published Austin Smith owns shares of McDonald's. The Motley Fool owns shares of Arcos Dorados and Panera Bread. Motley Fool newsletter services recommend Arcos Dorados, McDonald's, Panera Bread, and Yum! Brands. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.