The stock market took quite the tumble the past few days. On top of the carnage, McDonald's reported horrible October numbers. According to the report I read, sales were down 1.8% this October compared to last year. US was down 2.2%, Europe down 2.2% and Asia/Africa down 2.4%. Yikes! Exchange rates made matters worse meaning it wasn't as bad in constant currencies. Unfortunately currencies don't stay constant in the real world. The numbers are what they are and is a negative aspect of having global operations.
It's no wonder MCD stock set new 52 week lows. MCD is now trading at a 16.0 p/e which is lowest I've seen in quite a while. I'm a long term investor buying shares of companies I plan to hold for many years. I fully expect negative news and a bumpy ride along the way. Even with short term struggles I think McDonald's will continue expanding operations and profits over time. When I was a kid they used to report how many hamburgers they served on their signs. It used to be "X billion served". Then it was "billions and billions served" starting in 1994 because the number simply became too big. Executives must have figured counting hamburgers past 100 billion was pointless. McDonald's plan to take over the world is working nicely!
I added 15 shares to my portfolio at a 3.57% yield including commissions. This is my fourth MCD purchase in 2012 and the best price to date. I don't know if the price will go down from here, but I do know I picked up the shares in time to collect the dividend next month.
The way this market is headed I'll probably make one more purchase in November.