Stock Entry Point Article​

Best Restaurant Stocks To Invest In – McDonald’s Corporation

McDonald’s is one of the most iconic restaurant brands in the world. The company operates in more than 120 countries. What is so striking about McDonald’s is the fact that it is a dominant brand in most markets where it has a presence. McDonald’s has a highly fine-tuned franchise system that has allowed the company to grow in scale. McDonald’s is the largest restaurant chain by revenues in the world. Investors looking to invest in food businesses have to give McDonald’s a look.

McDonald’s Reports Q32020 Earnings

McDonald’s reported its third-quarter 2020 earnings in November 2020. Revenues were down 2% from $5.5 billion to $5.42 billion. Earnings per share were up 11% from $2.11 in Q32019 to $2.35 in Q32020. Same-store US sales turned positive during the third quarter and were up 4.6%. Both earnings and revenues beat analyst estimates of $1.9 and $5.4 billion.

Price Performance Of The Top Restaurant Stocks To Buy Now

McDonald’s stock closed at $214.25 on 17th December 2020. The stock is almost flat for the preceding 30 days. On a year-to-date basis, the stock is up a relatively modest 6.7%. However, McDonald’s has gained about 56% since the March market crash. On a 5-year basis, the stock has almost doubled.

For comparison, we looked at the stock of a couple of quick-serve food businesses. The first one is Chipotle Mexican Grill. Its stock closed at $1409.68 on 17th December 2020. The stock has gained a strong 8.7% over the preceding 30 days. On a year-to-date basis, the stock is up 64% while Chipotle has gained an incredible 200% since the March market crash. On a longer-term basis, the stock is up 160% over 5 years.

The second peer is Yum Brands. Its stock closed at $108.79 on 17th December 2020. The stock is up 4% for the past month and up 92% since the March market crash. The stock is up 6.5% in the year 2020. On a longer-term basis, Yum Brands has doubled in the last 5 years.

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