Tomahawk, WI 08/29/2014 (Basicsmedia) – McDonald’s Corporation (NYSE:MCD) stock has been an underperformer ever since current CEO, Don Thompson, assumed office in 2012, according to CNBC’s Melissa Lee. The addition of Guacamole Burgers into the company’s Menu remains one of the best plays for the giant fast food chain in its bid to attract the young generation into its food stores.
Setbacks after setbacks describe the tenure of the current CEO as the company is now entangled’ in tussles with authorities in China and Russia, over the safety standards of its products. Despite the unending scrutiny from authorizes and competition from other food stores, Piper Jaffrey’s Nicole Miller Regan remains bullish on McDonald’s Corporation (NYSE:MCD) stock with a ‘buy’ rating.
“We take the balance sheet into consideration obviously the dividend yield also I think there is an opportunity for them to focus on spear service for them to focus on accuracy. Things that ultimately will translate to increased frequency, “said Mrs. Regan.
Getting up to speed with technology remains another key play for McDonald’s Corporation (NYSE:MCD) if it is to fend off competition from Chipotle Mexican Grill, Inc. (NYSE:CMG) and Panera Bread Co. (NASDAQ:PNRA). Improved technology and diversified products like the Guacamole burgers are expected to play a big role in attracting the young generation into McDonalds food stores.
Controlling a big market share in the fast food segment has enabled McDonald’s Corporation (NYSE:MCD) to remain competitive in terms of pricing compared to other players in the space. Regan believes that McDonalds still has a lot to do on the technology side of the business if it is to be a force to reckon with in terms of competitiveness.
“[…] The technology is interesting to me because; they are not taking a leading stand-point. They do have an opportunity to look at some of what you know their best in breed peers have done from a technology perspective and really capitalize that and perfect it for their brand,” said Mrs. Regan.