• McDonald’s was founded in 1940, by brothers Richard and Maurice McDonald. The company has since grown to include more than 38,000 franchises in over 100 countries around the world - employing over 200,000 people 
• The company went public on the New York Stock Exchange in 1965, under the MCD ticker
• McDonald’s is a constituent of the S&P 500 and the Dow Jones Industrial Average - two of the most widely followed benchmark indexes of the United States stock market
• McDonald’s has a long history of dividend payments and has increased its dividend payout continuously since going public 
• As of April 25, 2023, McDonald’s had a market capitalization of over $214 billion 
• The company has made commitments to reduce greenhouse gas emissions substantially by 2030 and to reach net zero by 2050
• As of April 25, 2023, McDonald’s had an annual dividend yield of 2.07% and paid out quarterly dividends of $1.52 per share
• McDonald’s had its last stock split in 1999 when it split 3:1
• The Vanguard Group is the largest institutional shareholder of McDonald’s - owning an 8.9% stake in the company
• The stock has a beta of 0.63, which makes it less volatile than the overall market 

McDonald’s has long been one of the most stable stocks on the market and with a beta figure of 0.63, the stock is still considerably less volatile than the rest of the market.

Despite ongoing issues faced by the global markets over the past three years, McDonald’s has remained one of the highest performers over the same period of time. The stock has gained over 83% since 2018, with a bulk of this growth coming just after the outbreak of Covid-19 and subsequent lockdown measures. McDonald’s stock has doubled since the pandemic and continues on its steady growth course in the long run, which makes it one of the most rewarding and attractive stocks for long-term investors. 

With an annual dividend yield of 2.09% and a quarterly dividend payment of $1,52 per share, McDonald’s is also one of the best blue chip dividend stocks on the market. 

In financial terms, Mcdonald’s annual revenues have grown from $19.2 to $23.2 billion as of FY 2022, with earnings growing from $4.73 to $6.17 billion over the same period. 

The latest quarterly report from Q4 2022 has shown:

• Revenue decrease of 1.37% YoY - down to $5.93 billion 
• Net earnings increased by 16.15% to $1.9 billion
• Net profit margin increased by 17.79% to 32.12%

Solid revenue and earnings growth has boosted McDonald’s stock to all-time highs in 2023, which might signal investors to wait for a downturn to buy the stock at a lower valuation. The stock is also an attractive option for dividend investors, which increases interest from major financial institutions as well. 

Considering the all-time high valuation of McDonald’s stock, investors might need to consider the unique advantages and disadvantages associated with buying the stock to make an informed decision based on their investment objectives. 

Pros

• Brand recognition - McDonald’s is a globally renowned brand with millions of loyal customers and a presence in over 100 countries around the world, which gives it an edge against many competitors in the fast food industry
• Global presence - McDonald’s is present all around the world and is synonymous with globalization, which greatly diversifies the revenues from its thousands of franchisees globally 
• Consistent revenue and earnings growth - McDonald’s has excelled in the ability to bolster its bottom line and consistently improve its financial performance 
• Attractive dividends - McDonald’s has an annual dividend yield of 2.09%, which makes it an attractive investment for income-oriented investors 

Cons

• Market saturation - the global fast food industry is highly competitive, which gives McDonald’s very little room for error, as well as limits its ability to overhaul menu items 
• Dependence on franchisees - a bulk of McDonald’s restaurants are operated using a franchising model, which means that the performance of individual restaurants can have an effect on the performance of the company as a whole, while the company has limited oversight on the daily operations of each of its franchises 
• Changing consumer preferences - while high in demand, frequent consumption of McDonald’s products is considered to be harmful to human health, which forces McDonald’s to make changes to its menu and loses a large portion of health-conscious customers 
• Regulatory risk - McDonald’s restaurants are subject to food safety and labor regulations, which pose an ongoing risk in case of violations 

• Founded in 1940, McDonald’s has become one of the largest fast-food chains in the world, with over 38,000 locations in over 100 countries around the world
• McDonald’s went public in 1965 on the NYSE, under the MCD ticker symbol. The stock is a component of the S&P 500 and the Dow Jones Industrial Average
• The stock has risen by over 83% over the past five years - doubling since the start of the Covid-19 pandemic 
• McDonald’s is an attractive dividend stock, with an annual yield of 2.09% and quarterly dividend payout of $1.52 per share 
• At its current all-time high valuation, McDonald’s may not be the best choice for long-term investors - choosing to wait for a correction in the price of the stock