McDonald’s is one of the most iconic brands in the food and restaurant business. It operates stores in a staggering 120 countries. McDonald’s has built a name for itself because of its consistent taste and localized menu items. The company has also conducted clever marketing campaigns and offered customers value with concepts like the Happy Meal and meal combos. Unfortunately, the pandemic has been a significant negative for the restaurant industry. It turned things upside down overnight. The restaurant industry has not faced such a significant crisis in a very long time. The pandemic is posing to be an existential crisis for many of the smaller independent restaurant businesses. In such a situation, the strong names with financial strength are the ones that can survive. McDonald’s is undoubtedly one of those names, and if you are searching for restaurant stock to invest in, then McDonald’s could be a good bet.
Q1 2021 Earnings Results Announced
McDonald’s announced its first-quarter 2021 earnings results on 29th April 2021. Revenue and global comp sales were above the corresponding Q12019 levels. The company management believed that pent-up demand from customers is beginning to play out as things start to reopen again. Another major trend was the increase in the number of restaurants offering delivery. The number was a mere 3,000 four years ago. It has now risen to 30,000 restaurants representing around 75% of McDonald’s Corporation’s global footprint. In addition, 25,000 McDonald’s restaurants also offer the drive-thru option. These offerings are essential in a post-pandemic world where sitting down in a restaurant for a meal may not happen anytime soon. McDonald’s is worth analyzing further if you want to buy restaurant stock.
Restaurant Stock To Invest In
McDonald’s Corporation’s stock has returned 30% over the past year. On a 5-year basis, the stock is up almost 80%. McDonald’s also pays a dividend, with the yield hovering around 2.2% on 4th May 2021. McDonald’s has risen 2% over one month.