Subscribe to Money Magazine
Markets > Buy What You Know
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

Click here

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? »»

Do you think McDonald's attempt to reinvent itself as health-conscious and hip will work?
  Not sure
  Too soon to tell

   View results

   Top of page

  More on MARKETS
Will stocks plunge if Trump's tax plan implodes? Maybe not
Mice caught on tape at a Dallas Chipotle
Illinois dodges downgrade to 'junk'
How much O.J. may get from NFL pension plan
Elon Musk has 'verbal approval' for NY-DC hyperloop
Powerball reveals $447.8 million winner in California

graphic graphic