McDonald's (NYSE:MCD)

Commonly called McDo, McDonald's is the world's largest fast food chain. The concept was created in 1940 by Richard and Maurice McDonald. Is it still necessary to present its famous products all over the world, such as the Big Mac or the Cheese Royal? The company is organized in the form of franchises and in 2007 had about 32,000 restaurants and 400,000 employees in 2008.

We acquired McDo a year ago, and despite a 14% drop in the dollar and a mixed start to 2011, we are generating profitability of more than 5% on this stock. MCD is one of the few rare companies to offer value while being an interesting source of growth. The long-term dividend yield thus amounts to a very decent 3,48%, while the annual growth in distributions is 14,82%. McDonald's has increased its dividend for 34 consecutive years. Despite the yield and sustained growth, the distribution rate remains perfectly acceptable, at 50,66%, which leaves the company plenty of room to maneuver in the event of a difficult passage, and ensures the dividend's growth in the future.

The only small downside is the fairly high volatility, which stands at 19.13%. This is mainly due to the significant increase in McDo's price. We can also see below that the title has significantly outperformed the market for many years (+20'000% since 1970!).

In view of these figures, our analysis model considers that McDonald's is still an interesting buying opportunity.