McDonald's (MCD) Blew Away the S&P

With the market rolling on into a brand-new year, it's a great time to take a look back at the companies you own and how they fared in 2011. Sorry, S&P 500, there are no two ways about it: McDonald's (NYSE: MCD ) absolutely kicked your butt last year. As that key U.S. index struggled to tread water, Mickey D's was rocketing upward, rewarding investors with significant capital gains while also throwing off a nice dividend. Let's take a closer look at what exactly made it such a great year for the company.

Revenue grew, profits grew, and margins held steady. One possible explanation is that while McDonald's core customer base stuck around, additional diners traded down from elsewhere. Higher-end P.F. Chang's (Nasdaq: PFCB ) and Darden Restaurants (NYSE: DRI ) both had a much more challenging year. Both revenue and profit fell at P.F. Chang's, while Darden fell victim to shrinking margins even as sales grew. Consumers who had been stretching to afford a meal at nicer chains like those may have found themselves pushed by the economy to exchange the quieter sit-down meal experience for a quick fast-food treat.

Source: Motley Fool

Related Articles:
- Bonds Look Morbid When Compared To These Dividend Stocks
- 7 Higher-Yielding, Low Debt Stocks With A Tiny Payout Ratio
- The 2012 Dividend Aristocrats
- 7 High-Yielding Mega-Cap Stocks
- Best Stocks for 2012