#5 - McDonald's (NYSE:MCD)
One dichotomy of the current economy is the need for companies like McDonald’s (NYSE:MCD) to perform its role as an essential business. There’s no question that those who are still driving to work need options to grab food quickly and safely. But the golden arches are looking different today. The company has suspended eat-in dining until the restrictions have passed.
And the company is also instituting new policies to help ensure the safety of its workforce and customers. Employees are required to answer a four-part questionnaire before starting their shift. If they can’t answer “no” to all the questions, they will be sent home and cannot return until cleared by a doctor.
The company will also be performing temperature checks as soon as stores begin to receive the equipment (probably the week of April 5). McDonald’s is also streamlining its menu to ensure that customers can get their food quickly.
And all of this is, in my opinion, just noise. McDonald’s has not lost business because of a food safety crisis. The company was not in financial trouble before the pandemic. It’s hard to see a scenario in which McDonald’s will not be just fine when the pandemic is over. I would anticipate some drop-off in sales as customers flock to restaurants that they have been kept away from. But in the long run, McDonald’s is an institution, and shares are selling at an attractive price.
About McDonald's
McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.
Read More - Current Price
- $292.68
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 11 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $320.65 (9.6% Upside)
