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McDonald’s business looks to have benefitted even in the face of the current economic mishaps.
The investment landscape has evolved over the past decade and investors who injected as little as $1,000 into American fast food giant McDonald’s Corp (NYSE: MCD) will be in profit today. McDonald’s has had a very good fiscal year and per its fourth quarter performance report, the firm said it raked in a revenue of $5.93 billion and earnings per share of $2.59.
These figures beat analysts’ expectations of $2.545 on $5.68 billion revenue according to Refinitiv. The company reported good growth in both its top and bottom lines as it said sales surged globally by around 12.6%. The company also noted that growth in the United States recorded about a 10.3% uptick in the previous quarter.
With inflation a major uphill battle in the US in the past year, food prices have increased across the board, forcing firms like McDonald’s to increase the costs of their products. These price hikes constitute one of the factors, coupled with higher demand, that made the company record such impressive quarterly revenue.
“Overall, the consumer, whether it’s in Europe or in the US, is actually holding up better than what we would have probably expected a year ago or six months ago,” said CEO Chris Kempczinski on the company’s conference call Tuesday morning.
Major performance indices for the past decade reveal that McDonald’s has grown in almost all aspects of its business operation. In furtherance of the growth path, the fast food giant said it now plans to add as many as 1,900 new restaurants this year. Of the planned number, about 400 are scheduled to be located in the United States, highlighting how much of a larger share 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 over the past decade. Nonetheless, the company’s shares have had very decent growth, enough to return some profits to investors who staked about $1,000 on the stock.
A $1000 investment back in 2022 would have yielded $1,066 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 trading on January 31, McDonald’s was changing hands at $267.40 per share.
A $1,000 investment as of 2018 would have yielded $1,695 based on a $172.48 closing share price on January 30, 2018, while a $1,000 investment back in 2013 would have produced a massive $3,270 based on a $94.67 closing share price on Jan. 30, 2013.
McDonald’s business looks to have benefitted even in the face of the current economic mishaps, and while the past performance of a stock does not determine its future, investors appear better off with a stake in the stock than keeping the fiat dollar in the bank.