Shares of McDonald’s (NYSE:MCD) are down more than 10% since peaking earlier in the year. Interestingly the stock has rallied at the end of the summer on the heels of an earnings miss that in many cases would have resulted in more selling in the stock.
Therein is the power of QE Infinity. With the Federal Reserve backstopping the economy, investors can take more risk, especially with retail stalwarts like McDonald’s. The 6-cents-per-share miss in the June-ending quarter notwithstanding, look for McDonald’s to soar this quarter. Even bad news might be good news given the power of QE Infinity. The cheap fare and excellent execution make McDonald’s a wonderful stock to trade in advance of its next earnings report.