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Did You Cash in on McDonald’s Major Turnaround Year?

October 24, 2017
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With the growing popularity of healthy living, it seemed like the classic fast food chains were done for. However, in an incredible turn of events, the biggest fast food chain of them all, McDonald’s, has shown its resiliency and bounced back from a weak year in 2016 to gain over 30% this year.

That streak continued Tuesday morning as McDonald’s posted better than expected sales in its third quarter (according to CNBC).

According to Reuters, the reason McDonald’s was able to bounce back was an effective modernisation of both its menu and sales system.

McDonald’s has been working to reverse a decline in traffic at its U.S. restaurants, where it gets most of its profit, with new menu items such as fresh beef Quarter Pounders, premium customizable sandwiches such as the Signature Sriracha sandwich, as well as mobile ordering and delivery. – via Reuters

This redesign also coincided with some successful promotions that pushed McDonald’s stock up over $165 at the opening bell.

McDonald’s has shown investors that it has the ability to change with the times, which should give them confidence that the company can continue to evolve going forward.

CNBC also reports that the company has completed a re-franchising campaign in China well ahead of schedule, effectively decreasing the associated costs of running those locations.

Investors that are looking for a blue chip stock that also pays a decent dividend should consider McDonald’s for their next investment. The company has built a strong base for financial growth in the coming years and seems poised to continue its domination of the fast food world.

To read CNBC’s article on McDonald’s earnings, click here.

To read Reuters’ article on McDonald’s earnings, click here.

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