McDonald's Corporation (MCD): Today's Featured Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

McDonald's Corporation ( MCD) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.7%. By the end of trading, McDonald's Corporation rose 92 cents (1.1%) to $85.04 on average volume. Throughout the day, 5.4 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in a price between $84.37-$85.05 after having opened the day at $84.54 as compared to the previous trading day's close of $84.12. Other companies within the Services sector that increased today were: Good Times Restaurants ( GTIM), up 27%, China Jo-Jo Drugstores ( CJJD), up 22.8%, China HGS Real Estate ( HGSH), up 20%, and AirMedia Group ( AMCN), up 16.4%.
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McDonald's Corporation franchises and operates McDonald's restaurants in the global restaurant industry. Its restaurants offer various food items, soft drinks, coffee, and other beverages. McDonald's Corporation has a market cap of $84.38 billion and is part of the leisure industry. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are down 16.2% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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