Here’s a Reason Why McDonald’s (MCD) Stock is Down Today
NEW YORK (TheStreet) -- Shares of McDonald's (MCD) - Get Report are declining 0.78% to $129.18 in afternoon trading on Friday as investors become hungry for Shake Shack (SHAK), the burger chain that delivered solid results for the 2016 first quarter on Thursday.
Shake Shack's stock is climbing 7.12% to $36.70 this afternoon.
Shake Shack, which had 88 locations by the end of March, is the "next-generation McDonald's," TheStreet's Brian Sozzi wrote in a post on Real Money.
"I don't expect it to grow to the same size globally, but I do think it will grow at least double the 500-store projection the company shared in its prospectus," Sozzi added.
With more than 36,000 locations worldwide, McDonald's is still a powerful chain in the fast-food industry.
The Oak Brook, IL-based company's domestic locations accounted for 32% of total visits to quick-service restaurants for the first quarter of the year, according to xAd data released earlier this week.
Separately, McDonald's has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's solid stock price performance, increase in net income, impressive record of earnings per share growth and expanding profit margins.
You can view the full analysis from the report here: MCD
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 article's author.
