Stock events for McDonald's Corp. (MCD)
McDonald's increased its quarterly dividend by 5%, but its stock traded at 52-week lows due to boycotts in the Middle East and customer dissatisfaction with price hikes. In response to slowing fast-food traffic, McDonald's introduced a $5 meal deal and is testing discounted specialty beverages. Analyst sentiment has been mixed, with an average 12-month price target of around $323.43.
Demand Seasonality affecting McDonald's Corp.’s stock price
McDonald's experiences demand seasonality, with increased customer traffic during holiday seasons and festivals. Seasonal promotions and products, such as the McRib or Shamrock Shake, create temporary demand surges. Demand for cold beverages increases during the summer months. McDonald's uses demand forecasting systems to optimize supply and meet fluctuating demand, and its shares have historically shown seasonal strength in Q4.
Overview of McDonald's Corp.’s business
McDonald's Corporation (MCD) is a global fast-food chain operating in the Consumer Discretionary sector, primarily franchising and operating restaurants. The company's core business involves serving a diverse menu of food and beverages, with a significant portion of its revenue derived from franchise royalties and lease payments.
MCD’s Geographic footprint
McDonald's has a vast global presence with over 40,000 to 43,000 restaurants in more than 100 to 120 countries. The United States is its largest market, with other key markets including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the United Kingdom. China and Japan are also substantial foreign markets.
MCD Corporate Image Assessment
McDonald's brand reputation has faced challenges due to inflation, geopolitical events, and boycotts in Muslim-majority countries following actions by its Israeli franchisee. Concerns about price increases have also impacted customer sentiment. However, the company has engaged in successful marketing and promotional activities, including viral moments and collaborations, to strengthen its brand image. A recent incident involving the demolition of a Black history mural has also affected its reputation.
Ownership
McDonald's has high institutional ownership, with approximately 70.29% to 74% of the stock held by institutional investors. The Vanguard Group, Inc. is the largest shareholder, followed by BlackRock, Inc. and State Street Global Advisors, Inc. Insider ownership is relatively low, at 0.21%.
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$296.37