Look beyond this temporary setback

Article Excerpt

In 1990, McDonald’s became the first Western fast-food company to operate in Russia (which was then still the Soviet Union). Due to the invasion of Ukraine, the company is now selling its Russian outlets, which will trigger a big writedown. This temporary setback does not diminish McDonald’s long-term prospects. The company’s new strategy to expand its digital ordering, home delivery services and drive-thru capacity should spur its profits for years to come. Moreover, McDonald’s strong brand will make it easier to pass along rising food and labour costs to its customers. MCDONALD’S CORP. $244 is your #1 Conservative Buy for 2022. The company (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 739.5 million; Market cap: $180.4 billion; Price-to-sales ratio: 7.2; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest fast-food chain with 40,344 restaurants in 119 countries. It serves a wide variety of food, but is best known for its hamburgers and french fries. Franchisees now operate 93% of the…