Fast food juggernaut McDonald's announced a 12% increase in profits for the second quarter of 2010, earning $1.23 billion, or $1.13 a share. McDonald's has proven to be an excellent performer through the economic downturn as consumers are making the switch from $30.00 entrees to the MCD dollar menu. The weak economy has also given the company an unexpected boost in depressed commodity and labor costs.
Second quarter earnings were also largely boosted by the expansion of the already extremely successful McCafe coffee drink line. Sales in the United States were driven by the introduction of the new Frappes, and value-based beverages.
Not only has McDonald's been steadily growing over the past decade, it offers a very attractive 3.14%. Even if you hate the food, It is still worth a look in terms of your portfolio.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).