Fast food leader McDonald’s (MCD) struggled for a few years as the company worked to grow sales at its U.S. locations despite a shift in consumer appetite away from fast food towards more healthier options. MCD did a good job revamping its menu to cater to more health conscience customers, found great success in its all-day breakfast menus, and has used discounted menu items to drive foot traffic and grow its same store sales both in the U.S. and internationally. My MCD position has appreciated 140% since I entered the stock in 2011, and with the company expected to grow earnings by 8.6% per annum over the next five years, shares should continue to build recent gains. MCD trades at $162.50 with an average price target of $186.10
Disclaimer: As of the time of writing, the author holds a long position in this stock.
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