#7 - McDonalds (NYSE:MCD)
Some consumers might say it’s hard to recognize McDonald’s (MCD) anymore. The golden arches have receded from view, as the fast-food giant has refreshed the look and experience of their stores to compete with new entries in the fast-casual segment. Still, despite in-store kiosks and even home delivery in some markets, McDonald’s is showing that it understands, and is devoted to, its core customer. These customers represent the true believers of the brand and it’s where the company expects its growth to come from. Says CEO Steve Eastbrook, “We remain focused on delivering the most enjoyable experience for every customer, every visit," he said. "Whether that is when they visit a modernized restaurant with inviting hospitality or through the convenience of having delicious food delivered to their home, we know that our fundamental day-to-day commitment to our customers is running great restaurants."
McDonald’s focus on their core customer was rewarded during the last recession when their revenue grew 3.2 percent and operating income increased 17 percent. For the year, their stock had an increased return of 8.5 percent, outperforming the S&P 500 by 47 percent. There’s no reason to believe that McDonald’s won’t enjoy a similar performance whenever the next recession hits.
About McDonald's
McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.
More about McDonald's- Current Price
- $299.68
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $323.30 (7.9% Upside)
