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As the market leader, McDonald's faces intense competition around every corner. MCD faces pressure not only from other quick service restaurants, but also from nontraditional competitors as MCD expands offerings to include healthier food and more variety .
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While we have not seen conclusive evidence that the US economy is destine for a pullback, the future for the US consumer weighs heavily on our mind...
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We believe it is just a matter of time until an overburdened consumer [due to(1) higher gas prices, (2) credit problems, (3) slowing job growth, (4) and expected weakness heading into the holiday season] has an adverse affect on GDP.
Because of our bias towards a slowing US economy in the near-future, we would prefer to overweight consumer staples vs...
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