Invest Well in McDonald's Stock: Products, Dividend, Financial Statements, and More
When making long-term investments to ensure stability through diversified investments, it is recommended to prioritize ETFs that include McDonald's stocks. However, there might still be individuals who wish to invest directly in McDonald's stocks. Shall we also explore a value investing approach to assess whether McDonald's's performance will grow in the long term?
Q. What products and services does McDonald's provide?
McDonald's is a fast-food company that creates a variety of menus. It is convenient and affordable, making it highly accessible and appealing to many consumers. Classic items like Big Mac, Chicken McNuggets, and French fries continue to be beloved, and they offer various flavors with locally specialized menus.
- Big Mac: The Big Mac was first introduced in 1967 and has since become one of McDonald's signature products. Its famous Big Mac sauce and distinctive layering continue to be loved by people and have garnered a global fan base over the years.
- French Fries: McDonald's slices potatoes and uses edible oil in the frying process to make them crispy and golden. McDonald's French fries have a golden exterior and a soft interior.
- Coca-Cola: McDonald’s has built a close brand partnership with Coca-Cola. It includes Coca-Cola, Diet Coke, Sprite, orange juice, apple juice, lemonade, and iced tea. Through Coca-Cola beverages, customers can choose drinks according to their tastes.
- Chicken McNuggets: Chicken McNuggets are one of McDonald’s signature menus and have been loved since they were first introduced in the 1980s. Small chicken breasts are fried to be soft and crispy and are sold with various dipping sauces.
- McCafe: McCafe offers quality coffee made from 100% Arabica beans at a relatively low price.
Q. Is McDonald's's executive CEO honest and competent?
- He became CEO of McDonald’s in 2019.
- He was promoted to President of McDonald’s USA in 2016, overseeing the operations of approximately 14,000 restaurants.
- He joined McDonald’s Global Strategy Team in 2015.
- He joined PepsiCo’s Corporate Strategy and Development Group in 2000.
- He earned an MBA from Harvard Business School in 1997.
- He began his career in brand management at Procter & Gamble, working in the soap division for four years.
- He earned a bachelor’s degree from Duke University in 1991.
Q. What mission does McDonald's have for its work?
McDonald's is creating a new business structure and system that aims for horizontal growth and the development of everyone involved. They are striving for the growth of franchisees, suppliers, and employees alike.
- Quality: McDonald's provides products that are made with the finest ingredients, prepared using strict cooking methods, and prepared with verified safety procedures to deliver products with excellent taste.
- Service: McDonald's always considers the customer's perspective. They strive to go beyond just providing food and aim to bring happiness and joy to the customer's experience.
- Cleanliness: McDonald's provides clean and refreshing spaces and facilities, from the kitchen and lobby to the restrooms and parking lots. Crew members wash their hands every 30 minutes in the store, and they have a thorough and systematic system in place for checking hygiene conditions on an hourly basis. They also pay attention to details, such as using different hygiene items like gloves based on the type of food being prepared.
- Values: McDonald's aims to make every customer's experience enjoyable by providing high-quality food, friendly staff, clean environments, and fast and accurate service.
Q. Is McDonald's's financial statements healthy?
Net Profit Margin
- McDonald's has earned an annual net profit equivalent to 4.44% of the current stock price.
- It's good to see that the net profit has been growing at an annual rate of 7.40% over the past 5 years.
Total Debt
- The debt is 445.84% of the annual net profit.
- It would take about 5 years for the company to repay all of its debt.
- The net profit is growing, so McDonald's can repay the debt faster.
Dividend
- McDonald's offers a 2.51% annual dividend.
- Over the past 5 years, the annual average dividend has grown by 7.55%.
- Dividends are growing, which is good.
Share Buyback
- Apple recently repurchased its own shares equivalent to 1.60% of the stock price in the past year.
- The recent share buyback amount is 117.54% higher than the 3-year average.
Q. What is McDonald's's stock performance like?
- This year's total return is 1.95%.
- 5-year mean total return is 9.66%.
Q. When is a good time to buy and sell McDonald's?
If McDonald's is healthy and growing, it will rise in the long run, so it is good to buy in installments even if you think the current stock price is a bit high. On the other hand, if you think that McDonald's is no longer healthy in the long run, you can consider selling.
PER
- Current: 23.05
- 5Y Avg: 27.73
- Current value is lower than the average, so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.
Price/Sale Ratio
- Current: 7.47
- 5Y Avg: 8.11
- Current value is lower than average so it may be time to consider buying. However, this strategy is only recommended if you are convinced that the company will continue to be healthy and grow in the long term.