Mcdonals

We believe MCD offers little upside following price perceptiveness of roughly 35% YTD and is fairly valued at certain levels. MCD offers exceptional international growth opportunities, a dividend yield of 2.50%, increase dividend payout and repurchase considers, but the upside potential is reflected in the $59.75 bourgeon price (as of close on 10/31/07). ground on our conservative DCF analysis, we believe that MCD is worth $65.30 a shell out on a DCF analysis and is worth $55.85 a share using a blended comp multiple of both P/E and P/S. The markets perception of MCD as a relatively safe, large-cap, international play will continue to patronize the shares in the near-term and is our primary rationale for not aggressively exchange the stock. Because we do have a positive bias on McDonalds as a company, but believe valuations are stretched at certain levels, we would revisit the stock if we saw a pull-back from reliable levels.

Reasons to believe MCD is fairly valued at current levels (detailed on page 5) ?The cash payout growth will slow ? foreign working out in APMEA and other growth regions will stick time ?Same store sales and operational efficiencies in the ripen markets have played out ?Currency tail-wind is not a sustainable top line driver ?DCF and P/E valuation - The current price accurately reflects our DCF and multiple valuation Where we could be price (detailed on page 7) ?Continued execution from management ?International expansion grows faster that expectations ?Increased fund flows because of the large-cap, international and counter-cyclical aspects ?MCD finds more ship canal to distribute cash to shareholders Thesis MCD has been the icon of the fast-food business in the unify States over the past 50 years. They have revolutionized the quick portion industry and been a market leader in growth, variety and efficiency. Over the past five years MCD has focused on improving operating efficiency, reinvigorating US growth... If you want to get a full essay, order it on our website: Ordercustompaper.com

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