#4 - McDonalds (NYSE:MCD)
McDonald's has finally got its groove back in the last year. It was one of the best performing Dow Jones stocks in 2017 thanks to menu simplification efforts, the launch of all-day breakfast and working to speed up its drive-through lines.
The company also recently announced that it's going to bring back its Dollar Menu, with items listed at $1.00, $2.00 and $3.00. For example, the McChicken will be available for $1.00 in many markets and a new Bacon McDouble will be available for $2.00.
While higher-end fast food chains like Five Guys and Culvers are doing well hitting the upscale market, McDonald's is refocusing on its core price-conscious consumer again. For people that want to spend $1.00 or $2.00 on a burger, McDonald's is the place to be. These cheaply-priced food items might not have the greatest market share, but the company is more focused on market share and overall revenue.
McDonald's is also launching more stores with kiosks and smartphone-based ordering to shorten lines and get consumers their food faster. By automating the ordering process, each store could have one fewer cashier saving on labor costs and improving margins.
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
- $304.01
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $322.87 (6.2% Upside)
