McDonald’s Corporation (MCD), Mondelez International Inc (MDLZ): These Stocks Could Benefit From a European Recovery

Still, Mondelez International Inc (NASDAQ:MDLZ) can’t be played based on Europe alone. Activist investor Nelson Peltz has a big stake, and he wants the company sold to PepsiCo, Inc. (NYSE:PEP). Peltz’s activity could ultimately do more for shares in the short-run than a European recovery.

Europe has weighed on Ford Motor Company (NYSE:F)

Ford Motor Company (NYSE:F)’s European division has hit shareholders hard over the last few years. This year alone, Ford Motor Company (NYSE:F) expects Europe to cost the company $2 billion.

To counteract the effect of European decline, Ford Motor Company (NYSE:F) has been restructuring its European operation, closing plants and negotiating with local unions.

Still, Ford Motor Company (NYSE:F) is the second best-selling brand in 19 European markets. In 2012, it sold over 1.3 million vehicles in the European market, about half of the 2.3 million it sold in the US.

Ford is planning for a tepid European economy. But if that isn’t the case, if the European economy unexpectedly turns around, it lessen Ford’s bleeding in Europe and benefit the US automaker.

Investing for a European recovery

Of course, as McDonald’s Thompson said, calling for a European recovery may be a bit premature. In particular, the economies of Spain and Italy continue to struggle, and youth unemployment remains dangerously high.

But if Europe has made it through the worst, if things are finally starting to turn around, these companies could benefit. McDonald’s, Mondelez International Inc (NASDAQ:MDLZ) and Ford all derive significant portions of the revenue from Europe. A stronger European economy could certainly benefit their shareholders.

The article These Stocks Could Benefit From a European Recovery originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Ford and McDonald’s. The Motley Fool owns shares of Ford and McDonald’s. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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