Analysts Debate About McDonald's Corporation On CNBC

Kevin Carol, a Stifel analyst, said on CNBC that investors should have McDonald's Corporation MCD as a part of their portfolio. He explained that McDonald's has a dividend yield of 3.5%, which is covered with strong cash flows. In the short term, the stock could face some head winds, but if you have a long term perspective in mind, this is the stock to own. The company has been around for a long time and it had transformed a lot during the time. Mr. Carol expects MCD to improve and sees the company's buyback strategy as a positive for the stock price. Lee Munson of Portfolio Asset management is not a fan of McDonald's. He said that McDonald's and Wal-Mart Stores, Inc. WMT went up in 2008 because the market knew there would be a lot of poor people who would buy cheap menus in McDonald's. Now, every person in the U.S. that finds a new job will be reluctant to spend the money on food that is not healthy. He added that McDonald's tried to fight competition with a healthier menu, but he believes that the people would rather pay couple of bucks more and go to Panera Bread Co PNRA, Starbucks Corporation SBUX or Chipotle Mexican Grill, Inc. CMG.