Mike Capombassis McDonalds MCD-N BUY Sep 01, 2016

It recovered a few dollars today after falling on the illnesses caused by the Quarter Pounder. We don't want that gain. Rather, we want upside on a good quarter--they report tomorrow. 

It was over bought to begin with before the recent difficulties. It is in a trading range so if it hit $260 or $270 he would buy it.

He trimmed it last year due to continued cost pressures and valuation. Is worried about sales growth stagnating and more competition.

They report Thursday. Restaurants have struggled because of high prices, but MCD rolled out some cheaper offerings and customers responded, he hopes.

Well managed. Super-competitive environment. Noted consumer weakness in US and globally. Great job adapting to changing environment over the last 30 years. Growth only about 5-7%. More expensive US mortgages have reduced disposable income.

He always says buy on dips. A machine, well-run by fine managers.

Was downgraded last Friday and today over fears they won't meet expectations this quarter, including disappointment over MCD's new chicken strips dish, that it won't turn things around. Rather, customer prefer heavily breaded chicken and the find these strips ugly. However, history says it has never paid to downgrade MCD. It's the king, offering good value and is highly well-run. The CEO will figure it out.

Ability to source domestically is quite high, so impact of tariffs would be neutral. Extremely well run. Very good at pivoting to whatever the customer wants. Keeps a close eye on it. Likes the business; valuation a bit high for pedestrian, yet predictable, growth.

It reports Wednesday. The stock is out of synch from the company which is offering new, limited food items.

Run by a good CEO. He sees upside.