McDonald’s has long-term appeal

Article Excerpt

2024 is the third year in a row that we’ve made McDonald’s our top Conservative buy. The stock is down 15% since the start of the year, but we continue to see the company’s prospects as bright. McDonald’s is also doing a good job adjusting to changing economic conditions. For example, it recently extended its $5 value meal promotion in the U.S. Even though it earns less profits on these deals, they are helping it attract increasingly cost-conscious consumers. Longer term, McDonald’s stands to gain from its new “M-C-D” growth strategy, which includes expanding its digital and home-delivery services. Moreover, its asset-light business model (under which franchisees operate most of the restaurants) cuts the risk to investors. MCDONALD’S CORP. $253 is your #1 Conservative Buy for 2024. The company (New York symbol MCD; Conservative Growth Portfolio, Consumer sector, Shares outstanding: 720.7 million; Market cap: $182.3 billion; Price-to-sales ratio: 7.2; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.mcdonalds.com) is the world’s largest fast-food chain with over 42,000…