McDonald's shares hit all-time high

Shares of McDonald’s closed at a record high Thursday and are up again on Friday, ‘likely because of upgrades made to earnings’, one analyst said.

David Zanoni, financial author and Seeking Alpha contributor said the fast-food chain’s $277.79 closing price on Thursday was a result of analyst upgrades of earnings per share over the last three months from $10.49 to $10.58 in 2023 and from $11.44 to $11.70 in 2024.

Sign promoting McDonald's "PLT" burger with a Beyond Meat plant-based patty at one of 28 test restaurant locations in London, Ontario — Sign promoting McDonald’s “PLT” burger with a Beyond Meat plant-based patty at one of 28 test restaurant locations in Ontario, Canada, Oct. 2, 2019.

“McDonald’s typically performs well during uncertain economic times,” he added. “With inflation, families of four could easily spend over $100 in casual restaurants; however, with McDonald’s, that cost could be 50% to 75% lower as a more convenient option.”

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Zanoni said McDonald’s makes a lot of money collecting fees from its franchisees.

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As a result, “The company is a cash-flow turn-key operation, and part of this money is paid to shareholders as dividends.,” he finished.

Source: https://finance.yahoo.com/news/mcdonalds-shares-hit-time-high-185317787.html