Mc D in China

Next Monday, when McDonalds (MCD, Fortune 500) announces its earnings for the last trio months of 2010, psychoanalysts see the filaments winning streak to continue. Wall Street expects the drawing string give end the fourth quarter at nigh $1.15 per share, up 12% from the same period a family ago. Shareholders have reaped the benefits -- McDonalds stock has risen n early 40% in the past three years. But how long will the travel last? While Wall Street overwhelmingly maintains a buy position on the stock, some analysts are beginning to period of time to factors that could start to work against the worlds largest burger range of a function. Here are three headwinds to watch for in 2011. insurrection aliment legal injurys: Higher food commodity and energy prices have recently pushed up sweeping and retail food prices. The US Department of Agriculture predicts that prices will continue to accelerate during the first half of 2011, leading to a 2% to 3% rise in food price inflation for the year. McDonalds and other big burger chains have mostly been unaffected so far, but that might soon change. In a report last week, RBC Capital Markets analyst Larry Miller said McDonalds will raise prices by 2% to 3% to help offset its higher food costs. McDonalds declined to comment, citing a quiet period ahead of earnings next week.

However, the chains CFO Pete Bensen told analysts in October that while prices for beef and other ingredients were uphill, the burger chain could deal with the increase. But it may be too early to conclude that the Golden Arches will survive the inflationary pressures unscathed. Rising food prices could be a risk for McDonalds, says analyst Andy Barish of Jefferies and Company, scour though the chain is largely safeguarded from such volatility because the long majority of its operating profits, about two-thirds, come from franchises and royalties. While individualistic franchises might have a harder time dealing with rising prices given the sensitive demand of cost conscious consumers, it could... If you deficiency to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper