Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, October 6, 2023

Article Excerpt

MCDONALD’S CORP., $248.22, New York symbol MCD, is your #1 Conservative Buy for 2023. The company is the world’s largest fast-food chain with over 40,000 restaurants in 119 countries. It serves a wide variety of food but is best known for its hamburgers and french fries. Franchisees own roughly 95% of those outlets. McDonald’s has raised its annual dividend rate each year since 1976. The next increase will come in December 2023 when your quarterly payment increases 9.9%, to $1.67 a share from $1.52. The new annual rate of $6.68 yields 2.7%. The company is also increasing the royalty fee it charges new franchisees in the U.S. and Canada, from 4% of sales to 5%. The change does not affect existing franchisees. As well, the royalty rate in other markets is already 5%. The higher rates will help lift McDonald’s projected earnings by about 7%, from $11.58 a share in 2023 to $12.44 in 2024. The stock trades at 20.0 times that 2024 estimate…