McDonald’s (NYSE:MCD) is renowned not only for its burgers but also for its status as a Dividend Aristocrat. The company has increased its dividends for 46 consecutive years and has a dividend yield of 2.1%. Apart from offering a steady income stream, MCD is currently loved by Wall Street analysts, as it sports a Strong Buy consensus rating.
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Reasons to Love MCD Stock
McDonald’s performance in the second quarter (the results were released on July 27) reflected strong growth in sales, with support from rising customer traffic and increased spending. The increase came despite several lingering macro concerns and an intense competitive scenario.
In addition to its sales growth, McDonald’s has also focused on improving profitability through cost-control measures, price increases, and by enhancing the customer experience in its drive-thru and delivery channels.
Furthermore, McDonald’s has managed to increase its market share in the retail food sector. In the second quarter, its market share reached 7.3%, up from 6.7% in the previous quarter. This indicates that the company’s strategic initiatives, such as menu expansions, investments in digital ordering, and improvements in delivery services, are yielding positive results.
Altogether, MCD seems to be a reliable choice for income investors, with its dividend payout appearing sustainable due to its strong financial position.
What are Analysts Saying About McDonald’s Stock?
Overall, Wall Street analysts remain bullish on MCD stock. It has received 20 Buy and six Hold recommendations for a Strong Buy consensus rating. Meanwhile, the average MCD stock price target of $331.27 implies 16.55% upside potential from current levels.
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