McDonald’s continues to impress us

Article Excerpt

Despite growing uncertainty over the economy in the U.S. and other countries due to tariffs and inflation, McDonald’s shares are up over 20% in the past year and are close to an all-time high. We feel the company’s long history of adjusting its prices and menus in response to changing conditions will continue to draw cost-conscious consumers. Its investments in new restaurants, drive-thru lanes and loyalty plans also improve its long-term prospects. What’s more, McDonald’s is using artificial intelligence tools to improve its efficiency. That should fuel its earnings, and let it keep rewarding investors with higher dividends and share buybacks. MCDONALD’S CORP. $313 is a buy. The company (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 715.0 million; Market cap: $223.8 billion; Price-to-sales ratio: 8.8; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest fast-food chain with 43,756 restaurants in over 100 countries. It serves a wide variety of foods, but is best known for its hamburgers and french…