Is It Too Late to Buy McDonald's Stock? Here's Why You Should Consider It Now

Sunday, 12 May 2024, 07:15

Despite McDonald's stock experiencing a significant run-up, investors should focus on the company's enduring quality and industry strength rather than just its historical performance and valuation. The restaurant chain's strong brand power, expansive global footprint, and unique business model justify its premium price and make it a stock worth considering. The recent pullback presents a buying opportunity as the company's non-numerical attributes position it favorably for long-term success.
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Is It Too Late to Buy McDonald's Stock? Here's Why You Should Consider It Now

McDonald's Stock Analysis: Premium Price, Worth the Investment?

Although down from January's high, the stock's multiyear performance could be outright intimidating to would-be investors. Believe it or not, shares of fast-food chain McDonald's (NYSE: MCD) are up more than 100% from their pandemic-prompted low and are trading at nearly three times their price from just 10 years ago. It's surprisingly kept pace with the S&P 500 for many years and even outperformed the index when factoring in its dividends. Given the highly competitive, low-margin nature of the restaurant business, this is nothing short of incredible.

More than numbers; qualitative questions investors should ask

  • Has the company proven it's built to last?
  • Is the industry it's in a strong one?
  • Does management truly understand what makes the organization tick and how to maximize its strengths while minimizing its weaknesses?

In the case of McDonald's, the answer to all three questions is a resounding "yes!" McDonald's CEO Chris Kempczinski has led the company to be far more profitable now than it was prior to the pandemic.

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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.


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