2.11 Shares of AAPL @ $94.74
1.11 Shares of PEP @ $90.29
2.14 Shares of MCD @ $93.55
Total Capital Invested-$500
- Even with a growing trend for healthier food in the U.S and abroad; McDonald's continues to be a strong leader in the fast food industry. Part of McDonald's competitive advantage is that the company is recognized everywhere. Whether or not the food is "healthy"; their brand is as strong as it gets.
- They strive for international growth and tailor some of the product offerings to fit the needs of respective countries.
- With the slight pullback my opinion is MCD is a buy. I am bullish on it for 5 years and beyond. Plus, a nice dividend yield of 3.46% is another reason to rejoice.
- MCD management is doing everything right by expanding their addicting food into places like Russia, India, and China. McDonald's will be raking in the profits with the continued expansion
- Even with a weakened economy, most people can still afford a burger.
- Besides being number 2 in the soda competition it owns stable brands like Gatorade and Frito-Lay.
- Aquafina is a big hit in the bottled water market. As they make their way into new markets, they will tap millions of new customers! As the population continues to rise, so will their profit potentials.
- Nineteen of Pepsi’s brands each generate retail sales of more than a billion dollars annually. Pepsi- Cola, Tropicana Juice, Gatorade, Lay’s Potato Chips, Diet Pepsi, Doritos, and Mountain Dew rank among the best-selling brands in U.S. supermarkets.
- The analyst consensus for future earnings growth over the next five years is 9-11% annually, which strikes me as a mildly optimistic about Pepsi’s future.
- Iphone 6 is going on sale soon which will add significantly to Apple's huge cash balance.
- With the current P/E being 15.3 they are relatively cheap and if any product they launch is a blow out success they will be significantly undervalued at today's price.
- Persistent reports of new products in new areas, e.g. home entertainment and wearable technology. Iwatch is looking to be an innovative piece of wearable technology.
- The Iphones are really expensive but the customers pay a reduced price because they sign up for another 2 years of cell phone service through their provider. When customers are close to the end of their contracts, they will want the latest Iphone again from Apple. So Apple now has a great way to get repeat, regular business unlike many other technology companies. The Iphone was not only the first smart phone, it is also still what other phones are compared to. As long as Apple continues to be innovative, the company remains a BUY in my opinion.