Here's Why Investors Must Hold McDonald's (MCD) Stock for Now

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McDonald's Corporation MCD is benefiting from increasing comparable sales on the back of its focus on loyalty programs, expansion efforts and affordable menu offerings.The Zacks Consensus Estimate for...

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MCD delivered a trailing four-quarter earnings surprise of 6.4%, on average. The positive trend signifies bullish analysts’ sentiments, robust fundamentals and the chances of an outperformance in the near term.Shares of MCD have dwindled 7.8% in the year-to-date period compared with the Zacks Retail - Restaurants industry’s 2.9% decline. Over the past month, the stock has demonstrated resilience, showing a modest 1% improvement.The company’s prospects are hindered by ongoing inflationary pressures, especially commodity and labor inflation. Also, the negative impact of geopolitical tension in the Middle East market is an additional headwind.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0048580855.USD":"富达大中华区A","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","MCD":"麦当劳","BK4581":"高盛持仓","IE0034224299.USD":"PINEBRIDGE ASIA EX JAPAN EQUITY \"A\" (USD) ACC","BK4509":"腾讯概念","SG9999002463.SGD":"LionGlobal China Growth SGD","BK4211":"区域性银行","LU0456827905.SGD":"JPMorgan Funds - China A (acc) SGD","BK4501":"段永平概念","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","BK4588":"碎股","BK4526":"热门中概股","LU2242644610.SGD":"Fidelity China Innovation A-ACC-SGD","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","LU1794554557.SGD":"Allianz All China Equity AT Acc H2-SGD","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","ISBC":"投资者银行","WING":"Wingstop Inc.","BK4503":"景林资产持仓","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU0051755006.USD":"摩根大通中国A (dist)","LU0594300419.USD":"富达中国消费基金A","LU0327786744.USD":"Janus Henderson Horizon China Opportunities A2 USD","LU0516423174.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (USD) ACC","BK4505":"高瓴资本持仓","BK4504":"桥水持仓","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","GPS":"盖璞","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","LU0052750758.USD":"富兰克林中国基金A Acc","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU1046422090.SGD":"Fidelity Pacific A-SGD"},"translate_title":"以下是投资者目前必须持有麦当劳股票的原因","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WING":1,"MCD":1,"GPS":1,"ISBC":1},"content_text":"McDonald's Corporation MCD is benefiting from increasing comparable sales on the back of its focus on loyalty programs, expansion efforts and affordable menu offerings.The Zacks Consensus Estimate for this current Zacks Rank #3 (Hold) company’s 2024 earnings per share is pegged at $12.17, depicting 1.9% growth from the prior year’s reported levels. MCD delivered a trailing four-quarter earnings surprise of 6.4%, on average. The positive trend signifies bullish analysts’ sentiments, robust fundamentals and the chances of an outperformance in the near term.Shares of MCD have dwindled 7.8% in the year-to-date period compared with the Zacks Retail - Restaurants industry’s 2.9% decline. Over the past month, the stock has demonstrated resilience, showing a modest 1% improvement.The company’s prospects are hindered by ongoing inflationary pressures, especially commodity and labor inflation. Also, the negative impact of geopolitical tension in the Middle East market is an additional headwind.\nImage Source: Zacks Investment Research\nLet’s delve deeper and analyze the factors.\nWhat Makes the Stock Attractive\nLoyalty Program Bodes Well: McDonald's continuously seeks opportunities to enhance its top-tier loyalty program. Upon the launch of its loyalty program, the company has been able to transform its offerings across drive-thru, takeaway, delivery, curbside pick-up and dine-in. The program has not only helped in retaining the existing customers but also in expanding the customer base. During the first quarter 2024, the company declared loyalty system-wide sales of more than $6 billion and approximately $25 billion in the trailing 12-month period.Also, during the quarter, MCD revealed its expectation to deploy “Ready on Arrival”, which is a digital enhancement initiative in the United States, to boost its loyalty program participants and encourage customers to avail the digital platform. This initiative is expected to be launched across the top six markets by 2025-end. Given a rise in digital adoption, the company is optimistic about reaching 90-day active users to 250 million and $45 billion in annual loyalty system-wide sales by 2027.Footprint Expansion Plans: Being a globally operating fast-food chain, McDonald's is always considering its investment opportunities regarding the expansion to new as well as existing markets. Despite unfavorable global economic scenarios, the company continues to expand its global footprint, which can be evidenced by the opening of its 6,000th restaurant in China during the first quarter of 2024.The company is planning to open more than 2,100 new restaurants globally in 2024, including 500 openings in the United States and IOM segment and 1,600 (including nearly 1000 in China) inaugurations in the IDL market. The new unit growth aim showcases about 4% contribution to new unit growth (net of closures). Also, the company expects net restaurant unit expansion to contribute nearly 2% to 2024 systemwide sales growth. It targets to open 50,000 restaurants by 2027.Budget Menu Offerings: Apart from diversifying its menu items or adding new ones, MCD focuses on offering pocket-friendly menu items. This strategic move is undertaken after consideration of its customer’s demand patterns and the ongoing macroeconomic uncertainties. The company aims to deliver scrumptious meals at affordable pricing, thus gaining the confidence of its customer base.During the first quarter of 2024 earnings call, the company declared high returns from its McSmart menu in Germany, reporting strong performance with record units sold. The McSmart value menu has been now been established in France and is driving progress in the market’s business trends. Furthermore, McDonald’s’ Everyday Value menu continued to drive results during the quarter in markets including Spain.\nFactors Hindering Growth\nHigh-Cost Environment: McDonald’s is facing headwinds in the form of increased inflationary pressures and this scenario is expected to continue for some time. During the first quarter, McDonald’s company-operated restaurant expenses were $2.04 billion, up 6% from $1.92 billion reported in the prior-year quarter. A challenging macro environment, including rising interest rates, remains headwinds.Given the ongoing inflationary headwinds, the company expects the operating margin to remain pressurized in the near term. It expects commodity and food and paper inflation to be at the higher end in 2024. Also, it expects labor inflation to be in the high single digits.\nKey Picks\nHere are some better-ranked stocks from the Zacks Retail-Wholesale sector.Wingstop Inc. WING currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.WING has a trailing four-quarter earnings surprise of 21.4%, on average. The stock has risen 90.6% in the past year. The Zacks Consensus Estimate for WING’s 2024 sales and earnings per share (EPS) suggests growth of 27.5% and 36.7%, respectively, from the year-ago period’s levels.PDD Holdings Inc. PDD currently sports a Zacks Rank of 1. PDD has a trailing four-quarter earnings surprise of 39.1%, on average. The stock has hiked 132.8% in the past year.The consensus estimate for PDD’s 2024 sales and EPS indicates a 49.8% and a 29.1% rise, respectively, from the year-ago period’s levels.The Gap, Inc. GPS currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has surged 168.3% in the past year.The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS suggests a decline of 0.3% and 4.2%, respectively, from the year-ago period’s levels.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nMcDonald's Corporation (MCD) : Free Stock Analysis Report\nThe Gap, Inc. (GPS) : Free Stock Analysis Report\nWingstop Inc. (WING) : Free Stock Analysis Report\nPDD Holdings Inc. (PDD) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.0","shortVersion":"4.24.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2436425119"}