MCD: Serving Up Crisp Returns and Potatoes on National Fry Day
You’re 6 years old, its summer, and you are sitting in the backseat of your parent’s car on the annual family road trip. Dad has been driving for about 2 hours and stomachs are growling. That’s when you stop off at the next exit to curb your appetite at the family favorite fast-food restaurant. Your “go-to” order was probably the same each time and likely either the cheeseburger or chicken nuggets. But regardless of what you were choosing, we all can agree that everyone was getting an order of French fries.
Did you know, the crispy spud dates back to 1680 in Belgium and was originally served with fried fish? However, you choose to enjoy them today, it’s best you do as it is National Fry Day! Big fast-food conglomerates such as McDonald’s (MCD) will be running specials on their taters today in honor of the beloved side dish.
McDonald’s Corporation, a global leader in the fast-food industry, represents a compelling long term investment opportunity. With strong brand recognition and a presence in over 100 countries, McDonald’s has established itself as a dominant player in the market. The company’s robust business model, centered around a combination of franchising and company-operated restaurants, generates a steady stream of revenue and cash flow. As it relates to shareholder value, the company has a long history of returning capital to shareholders through dividends and share repurchases.
Currently, MCD stock is trading around $295 and is up ~11% year-to-date. Most long-term investors find this blue-chip to be a positive investment as the stock has beat the market with an ~86% return over 5 years compared to the S&P’s 5-Year return of ~60%. McDonald’s will announce its 2Q earnings on July 27th.
Tap into your childhood nostalgia and indulge in your favorite fast-food frites today!