Liability Adjusted Cash Flow Yield: 3.2%
Dividend Yield: 3%
LACFY/10-Year Treasury Yield: 1.55Return on Invested Capital: 15% It's hard to imagine that McDonald's (MCD) traded for less than $13 per share as recently as 2003. As this stock approaches the $100 mark, investors are left to wonder if McDonald's is one of Benjamin Graham's "goodwill giants" (a stock so ingrained in American culture, that it can march upward indefinitely) -- or, if changing consumer tastes (for instance, a move toward healthier eating) will one day derail the world's leading burger magnate. In June 2010, I called McDonald's an "indefinite hold" -- not much has changed since then. This stock is not particularly cheap, but continues to deliver impressive returns on invested capital; all the more admirable for an industry susceptible to commodity inflation and breathable margins.
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