It’s been six months since I last wrote about McDonald's Corporation (NYSE: MCD ). During this time, the company has released its annual results. There are many interesting things to discuss about the fiscal yearQuality Growth Investor. I have the simplest of tastes, I only like the best. Here I will analyze the companies in my investment universe. I am looking for the best businesses in the world in order to create a long term portfolio that can outperform the market.Analyst’s Disclosure: I/we have no stoc ...

McDonald's (MCD) closed at $312.48 in the latest trading session, marking a -1.14% move from the prior day. This move lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.39%, and the technology-dominated Nasdaq saw a decrease of 0.05%.Coming into today, shares of the world's biggest hamburger chain had gained 3.98% in the past month. In that same time, the Retail-Wholesale sector lost 2.42%, while the S&P 500 lost 3.94%.Analysts and investors alike will be keeping a close ey ...

McDonald's Corporation (MCD) is trading above its 50-day and 200-day simple moving averages (SMAs), signaling a bullish trend. On Monday, the stock’s closing price of $316.07 was above its 50-day moving average of $305.19 and the 200-day moving average of $288.64.Despite the market volatility and cautious sentiment due to macroeconomic uncertainty, including tariff concerns and potential recession risks, investors have been optimistic about McDonald's. The company has been gaining from internal efforts focu ...

Core Viewpoint - McDonald's is currently facing investor reassessment due to mixed financial performance and pressures impacting sales, yet it remains a key stock with significant strengths and growth opportunities [2][3][18]. Financial Performance - For FY 2024, McDonald's consolidated revenues reached $25.9 billion, a 2% increase year-over-year, while global comparable sales saw a slight decline of 0.1% [6]. - The U.S. market experienced a 0.2% increase for the year but a 1.4% decline in Q4, primarily due to a decrease in average check amounts [4]. - International Operated Markets (IOM) decreased by 0.2% for the year, remaining flat in Q4, while International Developmental Licensed Markets (IDL) saw a 0.3% decline for the year but a 4.1% increase in Q4 [5]. - Full-year diluted earnings per share (EPS) was $11.39, a 1% decrease, while adjusted diluted EPS was $11.72, down 2% [6]. Digital Strategy - McDonald's has been building a strong digital ecosystem, with the MyMcDonald's Rewards program achieving over 175 million active users and a 15% increase in user engagement year-over-year [7]. - The loyalty program generated $30 billion in systemwide sales in 2024, a 30% increase from the previous year, with $8 billion in sales in Q4 alone [8]. Shareholder Returns - McDonald's has a dividend yield of 2.29%, with an annual dividend of $7.08 and a track record of 49 consecutive years of dividend increases [10]. - The company produced $6.67 billion in free cash flow in FY 2024, supporting dividends and share buybacks, with approximately $2.82 billion worth of stock repurchased [11]. Competitive Advantages - McDonald's brand is globally recognized, and its operational scale allows for increased efficiency and a dominant market presence [14]. - The company operates a heavily franchised model (around 95%), generating consistent high-margin royalty and rent income [15]. Growth Opportunities - Continued expansion and improvements in digital and loyalty platforms are expected to increase customer engagement and sales [16]. - Ongoing menu innovations and tactical value offerings aim to drive traffic and address affordability concerns among consumers [16]. Market Position - McDonald's currently trades at a trailing P/E ratio of around 26.7 and a forward P/E ratio near 24.8, indicating market expectations for continued earnings growth [12]. - Analysts generally rate the stock as a moderate buy, with an average 12-month price target of $322.87, suggesting modest upside potential from the current price [12].

Core Viewpoint - McDonald's Corporation (MCD) has shown strong stock performance, gaining 7.8% year-to-date, outperforming its industry peers and broader market indices [1][4]. Company Performance - Following a significant E. coli outbreak, McDonald's has regained consumer confidence by prioritizing food safety and removing the problematic supplier from its supply chain [3]. - The company has effectively implemented its "Accelerating the Arches" strategy, menu innovations, and value offerings, contributing to its positive performance [3][10]. - McDonald's has outperformed competitors like Restaurant Brands International (5.5% gain), Wendy's (7.9% decline), and Chipotle (15.5% decline) year-to-date [4]. Earnings Estimates - The 2025 earnings estimate for McDonald's has increased by 0.1% over the past 30 days, with a projected year-over-year growth of 4.5% [5]. - Current earnings estimates for 2025 are $12.25 per share, with a slight upward revision from previous estimates [6]. Growth Strategies - McDonald's aims to enhance guest counts by focusing on food quality, convenience, and value, with initiatives like the McValue platform launched in January 2025 [8][10]. - The company plans to open approximately 2,200 new restaurants globally in 2025, targeting a total of 50,000 by 2027, emphasizing global expansion as a key growth strategy [11]. - Increased focus on delivery services and digital engagement is expected to drive sales, with a goal of achieving 30% of system-wide delivery sales through its mobile app by 2027 [12]. Valuation - McDonald's stock is currently trading at a discount compared to industry peers based on a forward 12-month price-to-earnings (P/E) ratio, making it an attractive option for investors [13]. Analyst Sentiment - Analysts are optimistic about McDonald's, with 22 out of 37 recommendations rated as Strong Buy, leading to an Average Brokerage Recommendation (ABR) of 1.74 [17]. - The average price target for McDonald's stock is $331.1 per share, indicating a potential upside of 5.9% from current levels [17].

U.S. stocks are experiencing a rather volatile period. Despite multiple optimistic forecasts for the S&P 500 heading into 2025, the benchmark index is down 3.6% year to date as of this writing. High-performing tech stocks, especially those at the forefront of the artificial intelligence (AI) revolution, have been struggling considerably over the first quarter of the year.What's an investor to do in uncertain times? In good times and bad, dividend stocks can serve as a stabilizing element for your portfolio. ...

Core Concept - McDonald's is launching a limited-time collaboration with the upcoming film "A Minecraft Movie," featuring special meals and collectibles that enhance the gaming experience for fans [1][2][8]. Product Offerings - The "A Minecraft Movie Meal" includes a choice of a Big Mac or 10-piece Chicken McNuggets, medium fries, a drink, and a limited-edition collectible [4][6]. - The "A Minecraft Movie Happy Meal" features one of 12 film-inspired figurines or Block World toys, along with a scannable code for an exclusive digital game [5][6]. Digital and In-Game Experiences - Each "A Minecraft Movie Meal" comes with one of six collectibles inspired by McDonald's characters and menu items, which can unlock exclusive skins in the Minecraft Marketplace [6][7]. - Purchasing through the McDonald's App provides a one-time redeemable code for the McDonald's Add-On pack in Minecraft, enhancing gameplay with additional characters and tools [7]. Marketing Strategy - The campaign aims to create an immersive experience that resonates with both McDonald's and Minecraft fan bases, leveraging existing fan creativity within the game [8]. - The promotion is set to begin on April 1, 2025, coinciding with the film's release on April 4, 2025 [2][10]. Company Background - McDonald's operates over 40,000 locations in more than 100 countries, with approximately 95% of its restaurants owned by independent local business owners [9].

Core Viewpoint - McDonald's and Restaurant Brands International are two prominent restaurant stocks for long-term investment, with McDonald's focusing on a single brand and Restaurant Brands managing multiple iconic names, including Tim Hortons and Burger King [1] Dividend Comparison - McDonald's has a strong history of dividend growth, increasing its dividend for 48 consecutive years, positioning it to become a Dividend King [3] - Restaurant Brands, formed in 2014, lacks the same historical track record but has also been growing its dividends [4] Payout Ratios - McDonald's has a lower payout ratio of under 60% of earnings, indicating more room for future dividend increases [5] - In contrast, Restaurant Brands has a higher payout ratio, which may raise concerns about its sustainability if not improved [6] Growth Prospects - Restaurant Brands may have better growth prospects due to its strategy of leveraging acquisitions to diversify operations, including the acquisition of Carrols Restaurant Group [7] - In 2024, Restaurant Brands reported comparable sales growth of 2.3%, while McDonald's experienced a decline of 0.1% [8] Investment Recommendation - For dividend-focused investors, McDonald's is recommended due to its proven track record, modest payout ratio, and strong brand, despite current sluggish sales [9] - Restaurant Brands is considered a cheaper stock with potential for long-term growth, trading at 21 times trailing earnings compared to nearly 27 for McDonald's [10]

Group 1: Stock Performance - McDonald's closed at $306.92, reflecting a +1.09% change from the previous day, outperforming the S&P 500's gain of 1.08% [1] - Over the past month, McDonald's shares have decreased by 0.4%, which is better than the Retail-Wholesale sector's decline of 11.45% and the S&P 500's drop of 8.26% [1] Group 2: Upcoming Earnings - Analysts expect McDonald's to report earnings of $2.68 per share, indicating a year-over-year decline of 0.74% [2] - The consensus estimate for revenue is $6.13 billion, down 0.55% from the same quarter last year [2] Group 3: Full Year Projections - For the full year, earnings are projected at $12.23 per share and revenue at $26.37 billion, representing increases of +4.35% and +1.74% respectively from the prior year [3] Group 4: Analyst Projections - Recent shifts in analyst projections for McDonald's are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] Group 5: Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows McDonald's currently holds a rank of 3 (Hold) [6] - Over the past month, the Zacks Consensus EPS estimate for McDonald's has decreased by 0.23% [6] Group 6: Valuation Metrics - McDonald's has a Forward P/E ratio of 24.83, which is higher than the industry average of 23.14 [7] - The PEG ratio for McDonald's is 3.11, compared to the Retail - Restaurants industry's average PEG ratio of 2.08 [7] Group 7: Industry Ranking - The Retail - Restaurants industry, which includes McDonald's, has a Zacks Industry Rank of 142, placing it in the bottom 44% of over 250 industries [8]

Core Insights - The article discusses the investment potential of McDonald's (MCD) shares, highlighting a beneficial long position held by the analyst [1]. Group 1 - The analyst expresses a personal opinion on McDonald's stock performance, indicating a positive outlook based on current market conditions [1]. - The article emphasizes that past performance does not guarantee future results, suggesting a cautious approach to investment decisions [2].