Stocks: (MCD)(SBUX)(F)(TOL)
McDonald’s stock hit a seven year high of $43. JP Morgan credits the company with turning around its operations in Europe and having strong-same store sales in the US. For a company with over $20 million in annual sales, the growth rate is impressive.
While car sales down and durable goods orders dropping at a rate not seen in six years, hamburgers and coffee are flying off the shelves. Ford may trade at $8, down from almost $15 two years ago, but McDonald’s has gone from $31 to its current high over that period. And, Starbucks has moved from $29 to $37. That means that the increase in the price of McDonald’s stock has even outpaced the coffee guys.
The inexpensive stuff is selling. Housing firms like Toll Brothers may be experiencing sharp drops in their stock prices because they can’t sell new homes, but at least can eat cheap.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he write about.