MCD shares outpaced the industry in the past year. McDonald's focus on franchising will cut the company's capital requirements and will boost earnings per share and ROE over the medium to long term.
MCD has a strong brand recognition globally and is the largest chain with restaurants in over 100 countries. It intends to attract customers in high growth markets and international lead markets, it is consistently trying to improve its performance in Australia, France, Germany and the UK. McDonald's continue globally to put in self-order kiosks, the table service, menu app and digital menu boards - making the costs in the long term lower and also cutting out human errors. Despite the huge competition, Australia's traffic has increased as a result of the $1.00 hamburger promotion.
On top of this with the rising health concerns and increase in obesity and related diseases amongst the customers, the company has discontinued the use of chicken raised with antibiotics. It has also replaced margarine with butter in its breakfast sandwiches and removed artificial ingredients in the famous chicken McNuggets.
MCD has always been strong on rewarding it's shareholders through share repurchases and dividends.
MCD technically speaking also looks a buy the dip scenario after a few weeks of harsh selling on the equity after missing earnings estimates and puts the equity currently at -6.10% YTD. The bulls have started to buy again.
NeroTree rates MCD as a BUY with a $180 price target
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