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Is McDonald's Stock in Trouble?


Shares of fast food giant McDonald's (NYSE: MCD) have been falling as the company deals with an outbreak of E. coli at its restaurants. At least 90 people have become ill due to the outbreak -- including one death -- apparently due to contaminated onions served on its burgers.

As McDonald's moves to address the issue, investors may not be easily convinced. And when you consider the stock has been trading at a high valuation and investors are also concerned about its growth prospects, there is no shortage of reasons for the market to be bearish on this blue chip stock right now.

But is the business in real trouble, or are these just short-term problems for investors? Here's a look at just how worried you should be about McDonald's stock, and whether this recent slide in valuation could make for a good time to invest in the golden arches.

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Source Fool.com

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