Good pick for post-pandemic gains

Article Excerpt

McDonald’s shares have rebounded strongly from last year’s coronavirus shutdowns. That’s due to the fast-food leader’s plan to expand its drive-thru capacity and keep most outlets operating despite the pandemic. New investments in online ordering and home delivery have also helped it overcome the downturn. The stock is poised for additional gains as more and more areas of the world re-open. In addition, McDonald’s “asset-light” model—its move to transfer responsibility for most of its outlets to franchisees—continues to cut costs and free up cash for dividend hikes. MCDONALD’S CORP. $232 is a buy. This company (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 746.2 million; Market cap: $173.1 billion; Price-to-sales ratio: 8.8; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest fast-food chain with 39,160 restaurants in 119 countries. It serves a wide variety of food, but is best known for its hamburgers and french fries. McDonald’s has three main divisions: the U.S. (40% of revenue, 49%…

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