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Buy What You Know: McDonald's
Mickey D's may be serving up hot sales numbers lately but can its stock continue to sizzle?
July 15, 2004: 12:31 PM EDT
By Parija Bhatnagar, CNN/Money Staff Writer

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NEW YORK (CNN/Money) - McDonald's trademark golden arches had a bad case of tarnish at the start of last year.

The world's largest restaurant chain was struggling with sluggish sales, falling earnings and a stale menu. It didn't help that people were starting to sue McDonald's for making them fat either.

But a series of menu changes during the past year has led to a stunning turnaround for the company. In June, McDonald's posted its 14th consecutive month of sales growth at restaurants open at least a year.

As a result of this newfound success, investors now have high expectations for McDonald's. Shares of the Dow component are up 12 percent so far this year.

Still, some industry analysts are expressing concern about steep sales comparisons just around the corner.

Plus, the man widely credited for McDonald's turnaround, former CEO Jim Cantalupo, died of an apparent heart attack in April.

With all this in mind, should investors still be lovin' McDonald's stock?

Find out what we think in this week's Buy What You Know? »»




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