The company is trading just off of its 52-week high and indeed is just off of its 10-year high.
The market's growth assumptions are reasonable. China has not faced a strong economic downturn and is therefore going to continue to be a robust market for the company. Same store sales in April were up 4.9%, indicating that McDonalds' demand is coming out of the economic downturn. The company has been able to penetrate the Indian market, where it cannot market either beef or pork. Overcoming a challenge like that demonstrates that this company can continue to expand until it saturates the entire planet if it so desires.
The major international threat, Yum Brands, is expanding rapidly to build out market share but is highly leveraged. Because they do not compete directly in burgers, there is little need for McDonald's to expand too rapidly to keep up. Furthermore,...
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