Why It's Time to Buy McDonald's Stock
McDonald's (NYSE: MCD) is the most recognized fast-food brand in the world, offering a value-priced menu at about 38,000 restaurants in 120 countries. The chain has been in news recently for the dismissal of CEO Steve Easterbrook over a consensual relationship with an employee. It violated company policy, and Easterbrook had to relinquish his seat on the company's board. Post that, McDonald's shares sank 2.3%, wiping out about $4 billion of the company's value.
The company-operated stores fell from 5,700 to 2,635 between 2016 and 2019. That said, the number of franchised stores increased from 31,200 to 35,663. McDonald's made a profit of $2.11 per share and generated revenues of $5.4 billion in the third quarter. There was a 1.1% rise in revenue and global same-store sales increased by 5.9% in this period, which is the 17th consecutive quarter of positive sales.The company has a third-quarter net income of $1.6 billion. The company has a P/E of 25.30, equal to an earnings yield of 4%.
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