The golden arches is a iconic symbol that we all know. We’ve all eaten a McDonald’s hamburger or their tasty french fries, but what you may not know is how incredible of a business McDonald’s Corporation (MCD) is.
McDonald’s has 31,000 restaurants spread among 117 countries, and it employs 1.5 million people. Most important to growth prospects, McDonald’s is investing heavily into China.
One interesting aspect of the China story is that China is experiencing rapid automobile growth. With a heavier driving society, it is a possible boost to drive-thru fast food. McDonald’s plans to double its number of restaurants in China over the next few years – they currently have approximately 1,100 stores there.
Back home, McDonald’s is the cheapest food you can buy essentially. I’m not here to argue its nutritional content or whether or not it is a good thing for America to be gorging on burgers and fries. I’m here to argue that America is experiencing a downshift in the standard of living for the masses and this will bode well for McDonald’s which can feed people cheaper than any other business.
McDonald’s is a company focused on returning cash to shareholders with an increasing dividend payout. This is a very safe and stable company, as recession-proof as it gets, with a history of increasing dividends.
I currently buy MCD in a DRIP plan on a monthly basis. Additional block purchases are desired under $60 / share. I’m backing up the truck on shares under $45 / share.
Read more on MCD
- Dividend Portfolio Updates: CIM, WMT, MCD
- Dividends Offer Decent Protection Against Inflation
- Macro Investing Trend: US Consumer Trade Down
- Thoughts On Buying Back Shares
- Price Increases Likely Unavoidable For McDonald’s
- Remodeled McDonald’s Stores Drive More Sales
- McDonald’s Replacing Some Cashiers With Touch Screen Ordering Systems
- Initial Dividend Portfolio