QSR's stronger earnings growth, Burger King momentum and discounted valuation contrast with MCD's digital strengths and U.S. execution challenges.
I track dividend increases across 1,200+ stocks, highlighting 10 notable raises this week, including MCD, MSFT, JPM, and INGR. MSFT stands out for quality (9.29 score, AAA rating), low payout (20%), and dividend safety, though its 0.79% yield is modest. MCD celebrates its 50th consecutive increase, achieving Dividend King status, but its D- safety grade and weak credit metrics warrant caution.
McDonald's and Dutch Bros both hit new 52-week lows on Sept. 17, ironically the same day that McDonald's reached Dividend King status.
McDonald's Corporation has underperformed, down 18% YTD, despite solid cash flow growth and its 50th consecutive dividend increase. Recent quarters showed slowing traffic, weaker comparable sales, and execution issues, driven by inflation and higher fuel prices impacting consumer demand. MCD's McDonald's > NEXT strategy, disciplined product launches, and plans for 2,600 new stores by 2026 aim to drive future growth as inflation moderates.
McDonald's has achieved Dividend King status with its 50th consecutive annual dividend increase, now offering a 3% yield at a six-year high. MCD trades at its lowest forward multiple in over a decade after a sharp selloff, despite robust margins and growing loyalty-driven sales. Technical and seasonal backtests indicate a strong probability of a 7% gap-fill ROI and historically positive returns in midterm election years.
Restaurants are struggling with higher prices for ingredients and labor, as well as the wellness trend the need for innovation:
A member of Congress recently disclosed numerous stock trades, with some new names bought and some of the Magnificent Seven stocks sold. Here's a look at the trades and the Congress member's trading history.
McDonald's announced this week that it is revising its U.S. value strategy after recording its slowest sales growth in more than a year.
Three longtime Dividend Aristocrats are closing in on a milestone only a handful of US companies have ever reached, but only one of them is genuinely standing on the doorstep of joining the most exclusive income-investing club in the market.
Investors need to pay close attention to MCD stock based on the movements in the options market lately.