7 Core Growth Stocks for Your Portfolio – McDonald’s Corporation (MCD)

Yum! Brands, Inc. (NYSE:YUM) illustrates this point. In January the company reported Chinese same store sales declined 41% after it was announced that its KFC branded chicken had high levels of antibiotics. In April, comparable sales fell another 29% following Avian flu fears. This is particularly alarming because China accounts for 50% of the company’s sales.

However there’s some good news for Yum! Brands, Inc. (NYSE:YUM) investors. During the company’s conference call last week management noted that its China business is “recovering as expected” and sees China same-store sales turning positive by the fourth quarter. Now that the company is running into easy comparables, it could be a catalyst for a higher share price.

However, what’s troubling for investors is that neither of the incidents above could have been predicted. It’s a risk McDonald’s Corporation (NYSE:MCD) shareholders will have to accept.

Foolish bottom line

McDonald’s Corporation (NYSE:MCD) incorporates both of the traits needed to be considered a core holding in your portfolio – a sustainable competitive advantage and great growth prospects. At 18 times trailing earnings the stock isn’t cheap, but investors shouldn’t be afraid to pay a premium given the strength of the underlying business.

The article 7 Core Growth Stocks for Your Portfolio – McDonald’s originally appeared on Fool.com.

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