McDonald’s (MCD) released lower January comps on Monday morning. Here’s what the news means for mutual fund investors.
MCD’s Comps
McDonald’s reported that its global comparable sales dropped 1.8% in January, compared to analysts’ estimates of a 1.2% decline in comps. The company saw a 0.4% increase in U.S. sales and a 0.5% increase in sales in Europe. For the Asia Pacific, Middle East and Africa region, sales fell 12.6%. The company blamed poor perception issues in Japan and the timing of the Chinese New Year for the decline in sales.
Uncertainty in MCD Shares
MCD’s monthly comps have become somewhat predictable as far as disappointing news is concerned. Despite the recent management shake up, numerous questions still remain as to what will be the catalysts for shares to rebound. In the meantime, investors may want to look elsewhere for better investment opportunities.
Mutual Funds to Watch
Investors interested in MCD may also consider a mutual fund as an alternative to owning the individual stock. The funds below currently hold the largest stakes in MCD.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Market Index | 1.68% |
| VFINX | Vanguard 500 Index | 1.08% |
| VDIGX | Vanguard Dividend Growth | 0.53% |
The Bottom Line
The funds listed above allow investors to gain exposure to MCD while remaining diversified. Investors interested in MCD may also be interested in Burger King (BKW) and Yum! Brands (YUM).