The largest restaurant chain in the world by revenue is McDonald’s. It earns revenue of more than $20 billion consistently. However, in the year 2020, that number dropped to $19.2 billion. It demonstrates how huge an effect the pandemic has had on the restaurant industry. There are reports and projections of thousands of restaurants being forced to shut down permanently due to the economic shock generated by the pandemic. The year 2020 was indeed a watershed moment for the restaurant industry. It forced restaurants to adapt radically to the changing business environment. Online delivery and digital strategies are now of major significance for restaurants and food establishments. If you are looking to buy restaurant stocks today in the hope of bagging a bargain, then you may want to stick to financially strong names and those businesses that have their online business in order.
McDonald’s Corporation – A Global Giant
McDonald’s Corporation began operations back in 1940 when founders Richard McDonald and Maurice McDonald opened the first store in San Bernardino, California. Interestingly, the brand White Castle was in existence before McDonald’s. However, White Castle did not become the kind of global brand that McDonald’s did. Over the next few decades, McDonald’s expanded in the US as well as internationally. It now operates in over 120 countries. One of McDonald’s success is its ability to maintain its quality and taste no matter what the location. McDonald’s also has plenty of experience in localizing its menu, a key skill necessary to succeed in international markets. If you want to buy today restaurant stock, then McDonald’s would be one candidate for sure.
McDonald’s Corporation’s stock closed at $ 235.56 on 3rd May 2021. The stock was trading at a 2.19% dividend yield and was up 2.9% over the preceding 30 days. A PE ratio of 34.25 is what the valuation looked like on 3rd May 2021.