Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 20, 2022

Article Excerpt

MCDONALD’S CORP., $233.91, New York symbol MCD, is your #1 Conservative Buy for 2022. The company is the world’s largest fast-food chain with over 39,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries. Franchisees own roughly 93% of those outlets. In response to Russia’s invasion of Ukraine, McDonald’s has agreed to sell its 847 outlets (84% of which are owned by the company) in Russia to a current licensee. The deal excludes the right to use the McDonald’s name, logo, branding and menu. In March 2022, the company temporarily closed the Russian outlets along with its 108 restaurants in Ukraine (100% company owned). It does not plan to sell the Ukrainian outlets but will continue to pay full salaries to those employees. McDonald’s has not yet said how much it will receive for the Russian outlets. However, it expects to record a $1.2 billion to $1.4 billion (mainly non-cash) writedown in…