Stock Analysis: McDonald’s (MCD)

McDonald’s Corporation. A true international powerhouse of a fast food chain. How could this company fail you may ask? It has proven to be a recession proof stock. You see it. The lines lined up to the road to get a Mcdouble. But let us explore the fundamentals and stock analysis of McDonalds corporation stock as we know it. What can we infer about the future growth of this company as we presume the company’s financials are healthier than the food it makes. Let’s plug this in to the 5 Component Theory and see what we get.

McDonald’s is the largest quick service restaurant company (QSR) in the world as measured by sales, with more than 37,000 restaurants in over 100 countries. The company’s restaurant system is mostly franchised and includes ownership or control of restaurant real estate sites.

Merrill Lynch Company Description

5 Component Theory: MCD

Historical Performance: Strong

Dividend Yield: 2.45%

Beta: 0.94

Fundamentals: Healthy Financials

Intuition: Strong fundamentals and historical performance with a beta of under 1.0 makes MCD an aggressive growth stock.

I entered a position in MCD during the famous 2020 stock market crash back in March. Now the stock is soaring and the underlying fundamentals will continue to push MCD toward future growth in my opinion. A recession proof stock, MCD is a real winner.

Best Regards,

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.