Will McDonald’s (MCD) Stock Fall on China Deal Difficulties?

McDonald’s (MCD) is struggling to find proper buyers for its China and Hong Kong franchise.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- McDonald's (MCD) - Get Report  is having difficulty to find the right caliber of bidders that the company had planned for in the sale of its China and Hong Kong franchise, the Financial Times reports.

McDonald's investors are exerting pressure for better quality control in Asia, which has led the company to place stringent terms on the deal.

Certain conditions, such as keeping management intact for two years and restrictions on taking the franchise public, are giving some bidders pause.

In June the company had received more than half a dozen bids for the franchise, one totaling $3 billion, Reuters reported. Certain restrictions the company placed on the bids, however, had deterred some private equity firms.

Shares of McDonald's closed at $122.25 yesterday.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations.

TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.

You can view the full analysis from the report here: MCD

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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