Ghost of Igloi wrote:
Yes, Wall Street looks forward, just like their $128 of estimated forward S&P earnings. Reality is peak Last Twelve Month S&P earnings Q3 2014 at $106.
From MCD 8-K: "McDonald's mitigates exposures, where practical, by purchasing goods and services in local currencies, financing in local currencies and hedging certain foreign-denominated cash flows."
a point for Igy: this is from a year ago - he said the then-current estimate for SP500 earnings was far too high. he was right. It was $128 then...we're looking at $118 I believe. (setting aside pro forma/adusted numbers)
but a point away from Igy
He suggested MCD was not a buy a year ago, when wall street was cheering the stock for some positive numbers. The analysts were clearly right - the stock is up around 12% from that point, vs. around 8 for the SP500.
page 359 if you want to review the debate.