McDonald’s Corporation (MCD) is the planet’s largest restaurant chain by revenue, and its iconic “Golden Arches” logo is one of the world’s most well-known corporate symbols. Tracing its roots back to 1940, the company has come a long way since it was a stand-alone drive-in. Today, McDonald’s owns or franchises over 32,000 restaurants in more than 115 countries. Over that time, the company has established a history of steady earnings and dividend increases, as well as a reputation for having a strong balance sheet and solid cash flow.

A comparison of fast-food companies in the multi-brand and one-brand space reveals a few differences. The major distinction is the success of those in the single-brand realm to automate parts of their production process, which typically has been labor intensive. In fact, the successful assimilation of technology has given McDonald’s (MCD) an advantage. Also, the focus on a single concept has enabled companies to strengthen their brands.

Investors looking for positive indicators of a stock’s future performance often consider a stock split a good sign. As a technical matter, a stock split changes nothing about a company’s performance. Still, it is believed that a stock split will help to release pent up demand for what is already a dear stock, based on a relatively high stock price, and spur the price higher. Some upcoming stock splits to consider are ResMed (RMD) and Tractor Supply (TSCO).

Viacom (VIAB) is the owner of numerous popular cable television networks, including MTV, VH1, Nickelodeon, Comedy Central, CMT: Country Music Television, Spike, TV Land, and BET. It is also the parent company of major film studio Paramount Pictures, as well as video game developers, Harmonix and MTV Games. The company’s earnings prospects are positive, thanks to an improving advertising environment, and profit-growth initiatives in each of these aforementioned businesses. What’s more, the ever-in-transition company recently paid its first common stock dividend and recommenced share repurchases.

One of the benefits of a Value Line research report is that it can help you decide what stocks to buy—but it can also help with the often more difficult hold and sell decisions. The truth is that not every stock in the market is worth owning.  With a low Timeliness Rank, and a host of other issues, Bank of America (BAC) isn’t the best option in the banking sector—the Value Line page can help you see why.

There are any number of events that investors use as buy and sell signals. One of the most often viewed is insider decisions. This week, we ran a screen of insider purchases and sales and found MEMC Electronic Materials (WFR), with some material insider buying, and several companies with material selling activity, including Google (GOOG).

Over the course of the next 20-30 years, drinkable water may become scarcer than oil.  Savvy investors may be able to find and capitalize on opportunities related to this field.  Some companies that manufacture the membranes or desalinization equipment used in the water purification process trade publicly.  Also, some larger conglomerates, such as General Electric (GE) and The Dow Chemical Company (DOW), have divisions set up for similar purposes, as well as to drive research and development in this field. 

The Value Line Investment Survey recently initiated coverage of AXIS Capital Holdings (AXS), the Bermuda-based holding company of the AXIS group of companies. AXIS capital provides specialty insurance and reinsurance on a worldwide basis through operating subsidiaries and branch networks in Bermuda, the United States, and Europe. The business consists of two distinct global underwriting platforms, AXIS Insurance and AXIS Re.

The performance of coal stocks often mirrors worldwide economic conditions, with share prices rising and falling in tandem with industrial activity. While some are proclaiming that fossil fuels are the past and renewable sources of energy are the future, coal is not quite ready to be ushered off the world stage. 

This article touches on the importance of having an understanding of balance sheet considerations when investing, particularly during tougher economic times. We describe Value Line’s Financial Strength ratings system, and list the main factors that determine individual categories. We also note some of the different capital structures among industries.