Will McDonald's (MCD) Stock Be Affected By Increased Russian Scrutiny?

NEW YORK (TheStreet) -- McDonald's Corp. (MCD) is seeing Russian authorities extend their scrutiny of the restaurant chain to several regions today, carrying out inspections at a number of locations, amid a standoff with the West over Ukraine, Reuters reports.

TheStreet's Julia Sun has more on Russia's inspections of McDonald's restaurants:


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The inspections are viewed by many businessmen as retaliation for Western sanctions against Russia because of its support for separatist rebels in eastern Ukraine, and they fear the retribution could spread to other symbols of Western capitalism, Reuters said.

McDonald's operates 440 restaurants in Russia and considers the country one of its top seven outside the U.S. and Canada, according to its 2013 annual report. Nearly a million people a day use its restaurants there.

 

Shares of McDonald's are slightly higher in mid-morning trading.

TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate MCDONALD'S CORP (MCD) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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