Is It Too Late to Buy McDonald's Stock Now? A Detailed Look at Investment Prospects

Sunday, 28 April 2024, 07:15

The post assesses the investment potential of McDonald's stock in 2024, exploring the factors affecting its growth and earnings. While the stock offers stability and modest gains, expecting market outperformance might be unrealistic. Key insights include high-margin revenue from franchise operations, stable dividend income, and potential challenges faced by franchisees due to inflation. Investors are advised to weigh the pros and cons carefully before making a decision.
https://store.livarava.com/9b0ba7bf-052f-11ef-a6c0-63e1980711b2.jpg
Is It Too Late to Buy McDonald's Stock Now? A Detailed Look at Investment Prospects

Is It Too Late to Buy McDonald's Stock Now?

It's not too late to make money but it might be too late for a high upside. Since going public in the 1960s, McDonald's (NYSE: MCD) has likely minted more than a few millionaires, given its sensational stock returns. The company has opened tens of thousands of restaurant locations worldwide since going public. And it outsourced much of its restaurant operations to third-party franchisees, boosting corporate margins.

What to Expect from McDonald's Investment

  • Stocks go up when there's high investor demand
  • McDonald's grows EPS at a single-digit annual rate due to high-margin revenue
  • Investors are unlikely to lose money but shouldn't expect market-crushing returns

McDonald's stock offers a good chance to make money with modest stock gains and a growing dividend. But I wouldn't necessarily expect it to be a top stock performer in a portfolio.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe