Time To Dig In To McDonalds (MCD)Time To Dig In To McDonalds (MCD)

Time To Dig In To McDonalds (MCD)

When McDonalds (MCD) made my Most Attractive Stocks list this month, I must admit I let out a small cheer. This company is one of the better-run businesses in the world. I have long eyed the stock in hopes that it would get cheap enough to dig in to – and now it has.

I recommend investors buy the recent dip in MCD as this company is as strong as ever and very well positioned to take share in the event of a global slowdown.

To get a sense of the strength of MCD’s competitive position, take a look at the company’s return on invested capital (ROIC) in Figure 1. Since 1998, MCD’s ROIC has never dipped below its cost of capital (WACC). In the last 10 years, the company’s ROIC has more than doubled.

At 17% at the ...