Here's Why McDonald's (MCD) is a Strong Growth Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
McDonald's (MCD)
Founded in 1948, Oak Brook, IL-based McDonald’s is a leading fast-food chain that currently operates more than 39,000 restaurants in more than 100 countries. The company mainly operates and franchises quick-service restaurants (QSRs) under the McDonald’s brand. Nearly 95% of the company’s restaurants worldwide are owned and operated by independent local businessmen as well as women. The company’s revenues include sales by company-operated restaurants and fees from restaurants, which franchisees manage.
MCD boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 2.1% year-over-year for 2024, while Wall Street anticipates its top line to improve by 4.4%.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $12.19 per share. MCD boasts an average earnings surprise of 6.4%.
McDonald's is also cash rich. The company has generated cash flow growth of 6.9%, and is expected to report cash flow expansion of 14.6% in 2024.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, MCD should be on investors' short lists.
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McDonald's Corporation (MCD) : Free Stock Analysis Report