Why McDonald’s Corporation (MCD) Stock Is Worth Owning

There’s often a lot to be said for buying the No. 2 company in an industry rather than the leader, since that second-place business had more room to grow. From an investment perspective, however, McDonald’s is available at a cheaper valuation, has a higher dividend yield, and has a lighter debt burden relative to its size than Burger King, making it a better overall fit for the IPIG portfolio.

What comes next?
When the Fool’s disclosure policy allows, I plan to buy McDonald’s stock for the Inflation-Protected Income Growth portfolio, as long as it remains below $95 a share. I expect to invest around $1,500, a 5% allocation in the portfolio, with 30% of the portfolio still remaining in cash. Watch my article feed for details of the next pick, coming soon.

Also, to score the performance of this pick, I’m making an outperform CAPScall on the stock at Motley Fool CAPS, putting my All-Star ranking on the line along with the plan to invest cold, hard cash.

After making investors rich in 2011, McDonald’s was one of the worst-performing blue-chip stocks last year. Our top analyst on the company will tell you whether you should be worried by this trend, and he’ll shed light on whether McDonald’s is a buy at today’s prices. Click here now to read our premium research report on the company.

The article Why McDonald’s Stock Is Worth Owning originally appeared on Fool.com.

Chuck Saletta owns shares of J.M. Smucker. The Motley Fool recommends Burger King Worldwide, Chipotle Mexican Grill (NYSE:CMG), and McDonald’s and owns shares of Chipotle Mexican Grill and McDonald’s. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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