McDonalds stock pitch (MCD)

Опубликовано: 04 Январь 2025
на канале: Nathan Worden

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McDonalds stock investment transcript:

The pitch that I'm doing today is actually something that I do fairly regularly in times of high volatility, like what we've been experiencing lately.

I use one of the Dow components— McDonald's as a great way to hedge this. So starting off, I want to just point out that the fundamentals are very in line with what the market averages are with a PE of 25.

It's a fairly large company, obviously at $189 billion, a nice dividend.

But what I'd like to point out is as this volatility has been happening, McDonald's has been consistently outpacing the Dow itself. It's been up 14% this month alone. And I want to point out specifically the reason I believe that to be the case is because of their remarkable consistency in earnings.

So you can see these bars, quarter over quarter. There's very little fluctuation in it. So it's a great safe haven play to get into, during these kind of tougher times, in the market where, other things are getting halved, McDonald's, won't be, typically.

Some catalysts that I want to point out specifically are: the record food prices where McDonald's is viewed as a traditionally a cheaper meal, obviously.

More travel, as we're opening up, more traffic through the drive-throughs is always a good thing for them. And just simply their promotions and their app popularity, which I'll get to on the subsequent screen is really pretty remarkable in and of itself.

How I play this, is a core position in my own portfolio where I drip the dividend.

And again, I recognize that it's a fair valuation compared to the market as a whole. And then in these times of volatility. So I actually purchased on Monday some calls in the name and I'm up to 73% on the week on it. Which is great. I use this as a honey hole for me to dip into to get some additional cash so that I can deploy that in, into other positions, as well as I'd like to point out that surprisingly enough, it's actually the top app on a consistent basis. I checked over the last three weeks and McDonald's sits at number one on the essential foods apps above Starbucks. Way above Uber eats and things like that, which I can find it to be almost surprising.

And on the top charts in general, it's number two for food and drink. So this is something that's really, able to make solid returns and have some consistency in it as well. I use this both as a core holding and then a hedge for volatility personally.

So that's the pitch and thesis on how I use McDonald's to accomplish those goals.