McDonald’s business appears to have benefited even in the face of current economic downturns.
The investment landscape has evolved over the past decade, and investors who pumped as little as $1,000 into US fast-food giant McDonald’s Corp (NYSE:MCD) will see profits today. McDonald’s has had a very good fiscal year and according to its fourth quarter performance reportthe firm said it had revenue of $5.93 billion and earnings per share of $2.59.
These figures beat analyst expectations of $2,545 on revenue of $5.68 billion according to Refinitiv. The company reported good growth in both revenue and results, as it said sales rose globally by around 12.6%. The company also noted that growth in the United States registered an increase of 10.3% in the previous quarter.
With inflation a major uphill battle in the US last year, food prices rose across the board, forcing companies like McDonald’s to increase the costs of their products. These price increases are one of the factors, along with increased demand, that caused the company to post such impressive quarterly revenue.
“Overall, the consumer, whether in Europe or the US, is holding up better than we probably would have expected a year or six months ago,” Chief Executive Officer Chris Kempczinski said on the company’s conference call. Tuesday morning.
Leading performance indices for the past decade reveal that McDonald’s has grown in nearly every aspect of its business operation. To further the growth path, the fast food giant said it now plans to add up to 1,900 new restaurants this year. Of the planned number, about 400 are slated to be located in the United States, highlighting the large share that North America means for the business.
McDonald’s and investment benefits
McDonald’s may not rank as one of the high-growth tech stocks whose valuation has more than quadrupled in the past decade. Nonetheless, the company’s stock has seen very decent growth, enough to return some gains to investors who bet around $1,000 on the stock.
A $1000 investment in 2022 would have returned $1,066 according according to a CNBC calculation based on the closing price of the company’s shares at $256.09 on January 30, 2022. As of the close of business on January 31, McDonald’s was changing hands at $267.40 per share.
A $1,000 investment from 2018 would have produced $1,695 based on a closing share price of $172.48 on January 30, 2018, while a $1,000 investment in 2013 would have produced $3,270 based on a closing price of share of $94.67 on January 30, 2013.
McDonald’s business appears to have benefited even in the face of current economic setbacks, and while a stock’s past performance doesn’t determine its future, investors appear to be better off with a stake in the stock than keeping the fiat dollar in the bank.
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
