It was not a great performance, but as demonstrated on Monday, management has a solid history of surprising investors when they least expect it. It also looks as if the company's decision three months ago to drop products from its menu, such as the Chicken Selects and Fruit & Walnut Salad, was a smart move.

Meanwhile, rival Wendy's ( WEN) and Burger King ( BKW) were beginning to chip away at McDonald's margins with lower-priced items. It didn't help that beef costs were on the rise. It was at that point that McDonald's decided to tweak its menu to find the right mix of value for its customers, while still delivering on the bottom line for its investors.

Here again, this move worked to perfection. McDonald's management has been pushing all of the right buttons, which has manifested itself in the company's favorable news on Monday. In this soft environment, which is causing chains like Chipotle to consider raising menu prices due to higher food cost, margin leverage is what McDonald's seeks.

The soft comps performance last quarter notwithstanding, McDonald's still has a strong balance sheet and I believe that margins will improve. If you ever walk into any McDonald's during a lunch hour it would be hard to tell that such underlying struggles existed. There are smiles all around.

The company remains unparalleled when it comes to strategic pricing and outside-the-box thinking. As such, this is not a stock that should be assessed for one quarter or even one fiscal calendar. I would still be a buyer here. Investors with patience will enjoy a stable brand that offers one of the best dividend yields on the market.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and the founder and producer of the investor Web site Saint's Sense. He has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

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