Stay Defensive with McDonald’s Stock as Fast-Food Giant Courts Customers

InvestorPlace2021-07-14

MCD stock is still a dividend champion that should withstand any market downturn. Call it a safety stock, or an all-weather investment. Through thick and thin, McDonald's provides comfort food – and ...

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Comments

woonws
2021-07-14
woonws
A giant food company that has been very active and innovative in Singapore...
Dwino
2021-07-14
Dwino
Defensive
bernardtayet
2021-07-14
bernardtayet
Dividend play is essential in stock pick to ride through volatile time like now.
Deonc
2021-07-14
Deonc
All-Time high, a good company.
FlorCheah
2021-07-14
FlorCheah
Safe stock
诗迷
2021-07-14
诗迷
Like and comment
- Vegelick:
  Done
- KTX:
  Ok

Leave a comment

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Through thick and thin, McDonald's provides comfort food – and ...</p>\n\n<a href=\"https://investorplace.com/2021/07/stay-defensive-with-mcd-stock-as-fast-food-giant-courts-customers/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CUBI","symbol_name":"Customers Bancorp Inc.","start_time":0,"source_url":"https://investorplace.com/2021/07/stay-defensive-with-mcd-stock-as-fast-food-giant-courts-customers/","article_id":"1182048444","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1182048444","pubTimestamp":1626230942,"sourceInfo":{"source_id":"lsy1606302653667","name":"InvestorPlace"},"weMediaInfo":null,"summary":"MCD stock is still a dividend champion that should withstand any market downturn.\n\nCall it a safety ","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CUBI":"Customers Bancorp Inc.","MCD":"麦当劳"},"translate_title":"在快餐巨头吸引顾客之际，保持对麦当劳股票的防守","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CUBI":0.9,"MCD":0.9},"content_text":"MCD stock is still a dividend champion that should withstand any market downturn.\n\nCall it a safety stock, or an all-weather investment. Through thick and thin, McDonald's provides comfort food – and comfort when markets turn sour – as MCD stock is a dividend yielder that’s appropriate for just about any portfolio.\nSometimes people feel that the markets are due for a correction, and they’re looking for companies to invest in as a defensive play.\nMcDonald’s fits that description perfectly. At the same time, however, this fast-food mainstay is surprisingly forward-thinking in its business strategy.\nAnd so, whether you’re a growth-focused investor or you prefer to play it safe – or maybe a little bit of both – MCD stock is quite possibly the best choice on the menu.\nA Closer Look at MCD Stock\nLet’s start with the basics. Not matter how you slice it, McDonald’s is a bona fide dividend king.\nThe companypaid its first dividendway back in 1976. And, McDonald’s has increased its dividend payouts every year since.\nCurrently, MCD stock offers a forward annual dividend yield of 2.21%.\nI wouldn’t go so far as to call the stock recession-proof. Yet, the dividend distributions could provide a cushion in tough times.\nNow, let’s apply a traditional valuation metric to MCD stock. On a trailing 12-month basis, its price-to-earnings ratio is 34.2.\nThat’s not super-cheap, but it’s also not extremely expensive, either. I’ll admit that at $235 and change (as of July 9), McDonald’s shares aren’t the most affordable assets on the market.\nBut then, as the old saying goes, “You get what you pay for.” Oftentimes quality costs more, and MCD stock’s price tag is justified by the pedigree, comfort and trust that the brand carries.\nFostering Loyalty, Digitally\nIn the wake of the Covid-19 pandemic, fast-food chains must do what it takes to keep the customers coming back.\nFor McDonald’s, this means implementingMyMcDonald’s Rewards, the company’s loyalty program, with a digital angle.\nReportedly, MyMcDonald’s Rewards allows subscribers on its app to earn points, which they can redeem on burgers and fries (though this program excludes delivery).\nCEO Chris Kempczinski said that McDonald’s expects to have rolled out the loyalty program in the company’s six biggest markets by the end of 2022.\nAlso on the topic of digital outreach, McDonald’sis continuing to roll outits mobile order and pay functionalities.\nThis is a sensible strategy as today’s fast-food customers have typically come to expect service that’s fast and mobile-friendly.\nAnd apparently, they’re not quite ready to come into the restaurant yet. Believe it or not, drive-thru service now accounts for approximately 90% of McDonald’s sales.\nBut that shouldn’t be a problem, as customers can easily place their orders on their phones, claim their rewards, drive up and get a (hopefully) hot meal on the go.\nTaking Care of People\nSo, here’s an issue that might be a little bit controversial. I’ll just present the facts, and let you decide what’s right and what’s not.\nMcDonald’s, reportedly, isincreasing the minimum wagefor more than 36,500 of the company’s employees by around 10%.\nAccording to the company, the pay will range from $11 to $15 per hour for entry-level employees, and $15 to $20 for managers.\nMcDonald apparently has stated that the company intends to hire 10,000 new employees within the next three months.\nSo, the pay hikes could have an impact on the company’s bottom line.\nOn the other hand, the pay raises could provide benefits from a public-relations perspective.\nAt least, that seems to be the angle that McDonald’s USA President Joe Erlinger is taking.\n“Our first value istaking care of our people,” Erlinger was quoted as saying. “These actions further our commitment to offering one of the leading pay and benefits packages in the industry.”\nIt’s interesting to consider whether the McDonald’s pay raises will have a lasting ripple effect throughout the fast-food industry. Only time will tell, I suppose.\nThe Bottom Line\nSo, there you have it. A dividend aristocrat that’s not rock-bottom cheap, but is about as solid a defensive investment as you’ll find.\nMaybe you agree with what McDonald’s is doing, or maybe you don’t.\nEither way, we should all be able to set our differences aside, enjoy some of those legendary McDonald’s fries, and hold our MCD stock shares for a decade or two.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":145776439,"gmtCreate":1626250320921,"gmtModify":1703756333680,"author":{"id":"3581999478634265","authorId":"3581999478634265","name":"woonws","avatar":"https://static.tigerbbs.com/f26ed1a10ee84ab97229aad191ef3133","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"A giant food company that has been very active and innovative in Singapore...","listText":"A giant food company that has been very active and innovative in Singapore...","text":"A giant food company that has been very active and innovative in 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play is essential in stock pick to ride through volatile time like now.&nbsp;","listText":"Dividend play is essential in stock pick to ride through volatile time like now.&nbsp;","text":"Dividend play is essential in stock pick to ride through volatile time like now.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/145464096","repostId":1182048444,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":145417112,"gmtCreate":1626237176936,"gmtModify":1703756109769,"author":{"id":"3569316529855154","authorId":"3569316529855154","name":"Deonc","avatar":"https://static.tigerbbs.com/d9aa45dd2eb58357f6477dcfb99d1415","vip":1,"crmLevel":3,"crmLevelSwitch":1},"htmlText":"All-Time high, a good company.","listText":"All-Time high, a good company.","text":"All-Time high, a good 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comment","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/145499871","repostId":1182048444,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5214871,"gmtCreate":1626240681934,"gmtModify":1663230946445,"authorId":4087177783839250,"author":{"id":4087177783839250,"authorId":4087177783839250,"name":"Vegelick","avatar":"https://static.tigerbbs.com/6f43dd73ebe50ff5f12ccfc823cf9dbd","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":145499871,"type":1,"supId":0,"prevId":0,"content":"Done","text":"Done","html":"Done"},{"id":5214268,"gmtCreate":1626235592270,"gmtModify":1663230944134,"authorId":3571482211918385,"author":{"id":3571482211918385,"authorId":3571482211918385,"name":"KTX","avatar":"https://static.tigerbbs.com/f7d2d6c9788fbae7ed024ed5ba7c58e4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":145499871,"type":1,"supId":0,"prevId":0,"content":"Ok","text":"Ok","html":"Ok"}],"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":96,"commentSize":18,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 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