Investors often strive to retire as millionaires, but overly aggressive strategies can hinder this goal. Opting for quality stocks and maintaining a long-term approach are key. Despite media hype for hot stocks, successful investors prioritize patience over frequent trading. Riding the market’s long-term growth trajectory is more effective.Consider three companies with enduring demand for products and services, ideal for long-term investment in building a desirable retirement fund.Berkshire Hathaway (BRK-B) ...

He’s lovin’ it. Meta CEO Mark Zuckerberg gave a Japanese McDonald’s a rave review, suggesting the fast food spot be awarded a Michelin star during a business trip that featured an awkward sword-making class.The big tech bigwig dined at the Golden Arches with his wife and shared his praise in a Tuesday Instagram post. “Japanese McDonald’s: 10/10. Give these guys a Michelin star,” Zuckerberg said in reference to one of the highest accolades bestowed upon restaurants. 3 Meta CEO Mark Zuckerberg praised a Ja ...

A McDonald’s customer in Boston, Massachusetts, allegedly became angry and punched an employee at the restaurant because they touched the lid of his drink, according to police. The unnamed customer, identified only as a 34-year-old man, punched the fast food worker "several times" on Saturday at around 7 p.m., Massachusetts Bay Transportation Authority Transit Police wrote on X, formerly Twitter.The suspect was arrested and transported to MBTA police headquarters for booking. MCDONALD'S CEO SAYS FAST FOOD C ...

M. Suhail Thesis Introduction Over the past few months, I have gradually warmed up to the idea that McDonald's stock (NYSE:MCD) deserves a "Buy" rating. Compared to my previously held "Equal-weight" thesis, which has been published in February 2023, there were two major variables that prompted my rating reassessment: Firstly, I acknowledge that rates are slowly falling, with markets pricing about 150 basis points worth of rate cuts through 2024. If the consensus trading projection is correct, than the ...

Global Restaurant Operations and Franchise Model - McDonald's total number of restaurants worldwide reached 41,822 by the end of 2023, with approximately 95% being franchised[8] - The company's revenue model includes sales from Company-operated restaurants and fees from franchised restaurants, with franchise agreements generally having 20-year terms[8] - McDonald's operates in over 100 countries, with significant reportable segments including the U.S. and International Operated Markets[8] - The company's heavily franchised business model represented approximately 95% of McDonald's restaurants worldwide at the end of 2023[53] - The U.S. segment is 95% franchised, International Operated Markets are 89% franchised, and International Developmental Licensed Markets & Corporate are 98% franchised as of December 31, 2023[169] - Total systemwide restaurants increased to 41,822 in 2023, up from 40,275 in 2022 and 40,031 in 2021[139] - Franchised restaurants accounted for 39,680 of the total systemwide restaurants in 2023, up from 38,169 in 2022 and 37,295 in 2021[139] - Company-operated restaurants decreased to 2,142 in 2023, down from 2,106 in 2022 and 2,736 in 2021[139] Financial Performance and Growth - Global comparable sales increased by 9.0% in 2023, driven by strong performance across all segments[28] - U.S. comparable sales increased by 8.7%, benefiting from strategic menu price increases and digital growth[28] - International Operated segment comparable sales increased by 9.2%, led by the U.K., Germany, and Canada[28] - International Developmental Licensed segment comparable sales increased by 9.4%, with strong performance across all regions[28] - Consolidated revenues increased by 10% to $25.5 billion, with Systemwide sales reaching $129.5 billion[29] - Operating income increased by 24% to $11.6 billion, with operating margin rising from 40% to 46%[29] - Diluted earnings per share increased by 39% to $11.56, and free cash flow grew by 32% to $7.3 billion[29] - The company opened over 2,000 new restaurants globally in 2023[29] - Total revenues for 2023 increased to $25,493.7 million, up from $23,182.6 million in 2022, representing a 10% growth[133] - Net income for 2023 rose to $8,468.8 million, compared to $6,177.4 million in 2022, a 37% increase[133] - Earnings per common share–diluted for 2023 were $11.56, up from $8.33 in 2022, a 39% increase[133] - Cash and equivalents increased significantly to $4,579.3 million in 2023 from $2,583.8 million in 2022, a 77% rise[135] - Total assets grew to $56,146.8 million in 2023 from $50,435.6 million in 2022, an 11% increase[135] - Long-term debt increased to $37,152.9 million in 2023 from $35,903.5 million in 2022, a 3% rise[135] - Retained earnings for 2023 were $63,479.9 million, up from $59,543.9 million in 2022, a 7% increase[135] - Comprehensive income for 2023 was $8,499.4 million, compared to $6,264.5 million in 2022, a 36% increase[134] - Net income for 2023 increased to $8,468.8 million, up from $6,177.4 million in 2022 and $7,545.2 million in 2021[136] - Cash provided by operations in 2023 was $9,611.9 million, compared to $7,386.7 million in 2022 and $9,141.5 million in 2021[136] - Capital expenditures in 2023 were $2,357.4 million, up from $1,899.2 million in 2022 and $2,040.0 million in 2021[136] - Total revenues for 2023 were $25.49 billion, with U.S. revenues at $10.57 billion and International Operated Markets at $12.38 billion[170] - Net property and equipment increased to $24.91 billion in 2023, driven by higher capital expenditures under the Accelerating the Arches strategy[171] - Revenues from franchised restaurants in 2023 were $15.44 billion, including $9.84 billion from rents and $5.53 billion from royalties[173] - Future gross minimum rent payments under franchise arrangements total $31.16 billion, with $14.97 billion from leased sites[174] - Total capital expenditures for 2023 were $2.36 billion, with $968.9 million in the U.S. and $679.5 million in International Operated Markets[170] - Depreciation and amortization expense for property and equipment in 2023 was $1.50 billion, up from $1.45 billion in 2022[171] - Total rent expense for 2023 was $1,542.3 million, compared to $1,476.1 million in 2022 and $1,560.3 million in 2021[177] - Variable rent payments for company-operated restaurants in 2023 were $56.1 million, up from $39.6 million in 2022[177] - Lease right-of-use asset and lease liability increased by approximately $950 million due to refined assumptions on renewal options[179] - Weighted-average remaining lease term for operating leases decreased to 17 years in 2023 from 18 years in 2022[178] - Weighted-average discount rate for operating leases increased to 4.0% in 2023 from 3.6% in 2022[178] - Total lease payments for 2024 are projected to be $1,204.3 million, with $1,126.3 million from operating leases and $78.0 million from finance leases[179] - Income before provision for income taxes in 2023 was $10,522.2 million, up from $7,825.4 million in 2022[190] - Gains on sales of restaurant businesses in 2023 were $103.2 million, compared to $59.8 million in 2022[182] - Impairment and other charges in 2023 totaled $362.3 million, including $290 million related to the Accelerating the Arches growth strategy[186] - Current tax provision for 2023 was $2,739.8 million, a 37.4% increase from $1,993.7 million in 2022[191] - Deferred tax provision for 2023 was $(686.4) million, a 98.5% increase from $(345.7) million in 2022[191] - Net deferred tax (assets) liabilities for 2023 were $(1,342.0) million, a 179.9% increase from $(479.5) million in 2022[192] - The company had net operating loss carryforwards of $1,112.8 million as of December 31, 2023, with $924.8 million having an indefinite carryforward[192] - Gross unrecognized tax benefits totaled $587.7 million as of December 31, 2023, a 9.2% decrease from $647.0 million in 2022[194] - The effective income tax rate for 2023 was 19.5%, a decrease from 21.1% in 2022[195] - Total liabilities for unfunded nonqualified supplemental benefit plans were $402.7 million as of December 31, 2023, a 6.0% increase from $380.0 million in 2022[196] - The company had a line of credit agreement of $4.0 billion as of December 31, 2023, expiring in June 2028[198] - The weighted-average interest rate of short-term borrowings was 5.4% as of December 31, 2023, based on $119.9 million of foreign currency bank line borrowings and $347.6 million of commercial paper outstanding[198] - Total debt obligations increased to $39,345.3 million in 2023 from $35,903.5 million in 2022[200] - Share-based compensation expense rose to $175.2 million in 2023, up from $166.7 million in 2022[202] - Total unrecognized compensation cost related to nonvested share-based compensation was $176.5 million as of December 31, 2023[202] - The intrinsic value of stock options exercised in 2023 was $304.0 million, compared to $242.2 million in 2022[204] - Cash received from stock options exercised in 2023 was $259.8 million, with a tax benefit of $69.2 million[204] - The fair value per option granted in 2023 was $54.35, up from $42.12 in 2022[204] - Outstanding stock options at the end of 2023 were 10.5 million with a weighted-average exercise price of $189.78[205] - The total fair value of RSUs vested in 2023 was $127.2 million, compared to $110.3 million in 2022[207] - The tax benefit realized from RSUs vested in 2023 was $25.1 million[207] - Nonvested RSUs at the end of 2023 were 1.2 million with a weighted-average grant date fair value of $238.21[207] Digital and Delivery Growth - The company plans to increase its 90-day active loyalty users from over 150 million to 250 million by 2027, and grow annual Systemwide sales to loyalty members from over $20 billion to $45 billion by 2027[33] - Delivery is available in over 35,000 restaurants across about 100 markets, representing over 85% of McDonald's restaurants, with plans to increase the percentage of delivery business originating from the mobile app to 30% by 2027[34][35] - McDonald's has more than 27,000 drive-thru locations globally, including nearly 95% of its approximately 13,500 U.S. locations, and plans to include drive-thrus in the vast majority of new restaurant openings[36] Expansion and Development Plans - The company plans to open more than 2,100 new restaurants globally in 2024, contributing to nearly 4% new unit growth, and targets expansion to 50,000 restaurants by the end of 2027[37] - The company expects net restaurant unit expansion to contribute nearly 2% to 2024 Systemwide sales growth, with full-year 2024 selling, general, and administrative expenses of about 2.2% of Systemwide sales[42] - The company expects 2024 operating margin to be in the mid-to-high 40% range, with capital expenditures between $2.5 and $2.7 billion, more than half directed towards new restaurant unit expansion[43] - The company expects to achieve a free cash flow conversion rate in the 90% range for 2024 and over the long term, with net restaurant unit expansion of about 2.5% of Systemwide sales growth[43] Diversity, Equity, and Inclusion (DEI) - Women globally in Company-owned and operated markets were paid 99.96 cents on the dollar in base pay on average compared to men for similar work in 2023[17] - The company's DEI strategy includes efforts to improve the representation of women globally and underrepresented groups in the U.S[15] - The company's annual incentive plan includes financial performance metrics and strategic measures related to DEI ambitions, holding executives accountable for progress[16] Training and Development - McDonald's Hamburger University provides training for Company employees, franchisees, and their eligible employees, with multiple campuses worldwide and online resources[17] Ethical Recruitment and Labor Practices - McDonald's became a member of the Leadership Group for Responsible Recruitment in 2023, focusing on ethical recruitment practices for migrant workers[17] Cybersecurity and Risk Management - The company's Board of Directors oversees the enterprise-wide risk management (ERM) framework, including cybersecurity risk, through the Public Policy & Strategy Committee (PPS Committee), which receives regular updates on cybersecurity matters from management[120] - The company's cybersecurity risk management programs are informed by the National Institute of Standards and Technology (NIST) Cybersecurity Framework and are designed to prevent incidents and ensure business continuity[121] - The company engages third-party providers for cybersecurity assessments, testing, and audits, including vulnerability testing and tabletop exercises, to evaluate the effectiveness of its cybersecurity programs[121] - Cybersecurity threats and incidents in 2023 did not materially affect the company's results of operations, financial condition, or business strategy[121] - The company provides mandatory cybersecurity training for employees and additional scenario-based training for key stakeholders to enhance incident prevention and reporting[121] Real Estate and Property Management - The company owns and leases real estate primarily for its restaurant business, focusing on long-term sales and profit potential through site analysis and cost control measures[129] - McDonald's real estate portfolio management is critical, as changes in location desirability or failure to adapt to consumer trends could negatively impact Systemwide sales and profitability[113] Executive Leadership - The company's executive officers include Jonathan Banner (Chief Global Impact Officer), Ian Borden (Global CFO), and Christopher Kempczinski (President and CEO), among others, with extensive industry experience[130] Supply Chain and Supplier Relations - The company relies on independent suppliers to meet high standards and specifications, with occasional disputes arising over compliance and business relationships[124] - Supply chain interruptions could increase costs or reduce revenues, with potential impacts from shortages, inflationary pressures, and transportation issues[111] Franchisee Relations - The company faces occasional disputes with franchisees over issues such as quality, service, cleanliness, and franchise grants, renewals, and terminations[123] - McDonald's heavily franchised business model relies on the financial success and cooperation of franchisees, with risks including franchisee sales trends and operational issues[112] Regulatory and Legal Compliance - The company is subject to various government regulations and occasionally involved in litigation or proceedings related to advertising, franchising, health, safety, and employment laws[128] - Increasing regulatory and legal complexity, including compliance with food safety, marketing, and environmental regulations, could raise costs and expose McDonald's to litigation risks[114] Tax and Financial Risks - Changes in tax laws or unanticipated tax liabilities could materially impact McDonald's financial results, particularly with adjustments from tax audits or new tax policies[115] - A decrease in McDonald's credit ratings or an increase in funding costs could negatively impact profitability and financial flexibility[118] Economic and Market Risks - Unfavorable economic conditions, including inflation and currency fluctuations, could adversely affect McDonald's business and financial results[116] - Health epidemics or pandemics could disrupt supply chains, labor availability, and consumer behavior, negatively impacting McDonald's operations and financial outlook[116] - Volatility in commodity costs, such as beef, chicken, and pork, could adversely affect McDonald's profitability due to unpredictable market factors[117] - Severe weather, natural disasters, or climate change could disrupt operations, supply chains, and consumer confidence, affecting McDonald's results and prospects[119] Shareholder Returns and Capital Allocation - The company repurchased 11.1 million shares of its stock for $3.1 billion in 2023[52] - The Company returned approximately $7.6 billion to shareholders through dividends and share repurchases in 2023[87] - The company repurchased 3,140,369 shares of common stock in Q4 2023 at an average price of $273.53 per share, with approximately $6.28 billion remaining under the share repurchase program[103] - The company has paid dividends on common stock for 48 consecutive years through 2023, with a policy of increasing dividends annually[102] - McDonald's cumulative total shareholder returns from 2018 to 2023 were $187, compared to $207 for the S&P 500 Index and $180 for the Dow Jones Industrials[100] Innovation and Product Development - The company plans to implement "Best Burger" operational changes to improve burger quality across nearly all markets by 2026[32] - McCrispy is set to be offered in nearly all markets by the end of 2025, with expansions into wraps and tenders[32] - The company's success depends on its ability to innovate and differentiate the McDonald's experience, balancing customer value and convenience with profitability[106] - The company's ability to anticipate and address industry trends and evolving consumer preferences is critical for maintaining competitive advantages[106] Labor and Workforce Challenges - Company employees totaled over 150,000 worldwide as of year-end 2023, with approximately 70% based outside of the U.S[14] - Labor challenges, including availability and cost, could adversely impact McDonald's operations and customer satisfaction levels[112] Food Safety and Brand Reputation - Food safety concerns could adversely affect McDonald's brand, reputation, and financial results, with potential impacts from food-borne illnesses, contamination, or tampering[113] Information Technology and Security - Information technology system failures or security breaches could disrupt operations, harm reputation, and lead to financial losses, including risks from AI tools and third-party systems[113] Foreign Currency and Interest Rate Risks - The company's largest net asset exposures at year-end were: British Pounds Sterling ($1,080 million), Australian Dollars ($1,015 million), Canadian Dollars ($703 million), Polish Zloty ($571 million), and New Zealand Dollars ($238 million)[92] - A 10% adverse change in foreign currency rates or a 1 percentage point adverse change in interest rates from 2023 levels would not materially affect the company's results of operations, cash flows, or the fair value of its financial instruments[91] - The company generates approximately 65% of its operating income from international operations, with significant reinvestment in foreign jurisdictions to support growth[91] - The company has $15 billion of authorized borrowing capacity, with $9.7 billion outstanding as of December 31, 2023, and $4.0 billion available under a committed line of credit[91] - The company has guaranteed loans totaling approximately $193 million as of December 31, 2023, with no carrying value for these guarantees on the balance sheet[91] Derivatives and Hedging Activities - The company had derivatives outstanding with an equivalent notional amount of $1.9 billion to hedge forecasted foreign currency denominated cash flows as of December 31, 2023[161

The term “insider trading” takes on a different significance for regular investors when they discover that specific traders possess information about stocks or potential government investments that aren’t accessible to everyone.Another instance of these unjust trades involves a US Representative, Josh Gottheimer, who purchased shares of Adyen NV (AMS: ADYEN) in October 2023.You might wonder why this trade seems suspicious. Since then, Adyen’s stock price has surged by over 109%. Notably, it belongs to a fin ...

McDonald's (MCD) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this world's biggest hamburger chain have returned -1.4% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Retail - Restaurants industry, to which McDonald's belongs, has gained 3.8% over this period. Now the key question is: Where could the stock be headed in the near term? ...

If you’re hoping to gauge Americans’ lingering discontent with postpandemic price increases, look no further than the McDonald’s menu. You can find gripes on social media about a $5 chicken sandwich, $3 hashbrowns or a $5.50 Egg McMuffin, all of which some customers have called too pricey for a place known for cheap fast food. The price of a meal at the classic burger chain has even hit $18 at one location — that’s what a Big Mac combo meal will run you at a rest stop in the wealthy town of Darien, Conn.  I ...

Amid recent market volatility, certain growth stocks gained favor, but many deserving businesses remain overlooked. As 2024 becomes more welcoming for bullish investors, most investors also seek fresh opportunities in different stocks. Smart stocks that can outperform in times of uncertainty may trade at a higher premium, and are increasingly in higher demand.In recent years, the stock market has been facing much uncertainty. However, the S&P 500 surged roughly 20% over the past year. Long-term investors ma ...

Investing in time-tested brands that people use every day is a proven way to grow wealth in the stock market. Many of these companies are so profitable they can reward their shareholders with regular dividend payments that grow over time.Here are two dividend stocks to buy right now that have a long record of paying extra income to investors.PepsiCoPepsiCo (PEP 0.01%) is one of the best dividend stocks to boost your income. It owns several snack food and beverage brands that people buy every day, including ...