Still an Upside for McDonald’s Corp?

McDonald’sMcDonald’s Corp. (NYSE: MCD) is one of the world’s most recognizable brands. The fast-food company, known for its burgers and sandwiches, has a global presence and a stable revenue stream from franchised operations. The company also offers an excellent blue-chip stock. Strong price growth throughout this year and an implied upside make it an option to consider this February.

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Sales revenue went through three years of decline from 2016 to 2018 before McDonald’s turned things around in the 2019 fiscal year with 0.24% growth. While this growth was mild, it’s still a positive sign for investors. More importantly, the company has been able to increase its gross income for the last five consecutive years, thanks to cost reductions and improvements in operational efficiency. In the 2019 fiscal year, McDonald’s generated a gross profit margin of 52.74%.

In the current fiscal year, earnings are expected to increase by 8.5%. This stock is backed by a stable company that has continually adapted to shifting consumer trends over the years. Even with lackluster revenue growth, the earnings potential is high. There’s a dividend for investors with a yield of 2.35%. An average target price of $230.96 suggests that there will be more gains by the end of this year.

Key Data:

  • 1 Year Price Growth: 45%
  • YTD Price Growth: 72%
  • 3 Month Price Growth: 25%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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