STOCK PICKS: Top 5 Large-Caps Aug. 13

McDonald's (MCD Quote) primarily operates and franchises McDonald's restaurants. We have rated McDonald's a buy since March 2004, based on strengths such as its solid stock price performance and impressive record of earnings per share growth. The company announced that its comparable sales and guest counts grew across all geographic segments in the second quarter of fiscal 2008. Profitability also increased during the second quarter.

McDonald's revenue increased 4% year-over-year, contributing to significant earnings per share improvement from a loss of 59 cents a share in the second quarter of fiscal 2007 to $1.04 in the most recent quarter. Net income surged 267.3% when compared to the same quarter a year ago. Additionally, the company experienced double-digit operating income growth in several geographic regions (Europe and Asia/Pacific, the Middle East, and Africa) and produced solid quarterly results in the United States.

Looking ahead, management believes the company will continue to have momentum due to a collective focus on delivering quality products at good value. While the company may currently harbor some minor weaknesses, we do not expect them to have a significant impact on McDonald's future financial results. .

Northern Trust (NTRS Quote) is a provider of investment management, asset and fund administration, fiduciary and banking services to corporations, institutions and affluent individuals.

Northern Trust has been rated a buy since March 2005. On July 16, the company announced that it achieved strong core results in the second quarter of fiscal 2008. Earnings increased 4.2% year-over-year, aided by revenue growth of 24%. Net income inched up to $215.60 million from $206.90 million a year ago. During the second quarter, the company repurchased 39,782 shares for a total cost of $2.90 million.