Dow Today: McDonald's Corporation (MCD) Lower

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.

The Dow Jones Industrial Average ( ^DJI) is trading down 7.0 points at 13,018 as of Monday, Dec 3, 2012, 10:35 a.m. ET. During this time, 124.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 627.9 million. The NYSE advances/declines ratio sits at 1,415 issues advancing vs. 1,418 declining with 151 unchanged.
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Holding back the Dow today is McDonald's Corporation (NYSE: MCD), which is lagging the broader index with a zero-cent decline to $87.04. This single drop is lowering the Dow Jones Industrial Average by 0.0 points or roughly accounting for -0% of the Dow's overall loss. Volume for McDonald's Corporation currently sits at 1.7 million shares traded vs. an average daily trading volume of six million shares.

McDonald's Corporation has a market cap of $86.83 billion and is part of the services sector and leisure industry. Shares are down 13.2% year to date as of Friday's close. The stock's dividend yield sits at 3.6%.

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. The company operates approximately 34,000 restaurants in 120 countries around the world. The company has a P/E ratio of 16.3, below the S&P 500 P/E ratio of 17.7.

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.

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