Bulletin
Investor Alert

New York Markets Open in:

Nov. 10, 2021, 8:58 a.m. EST

Should You Buy McDonald's After Q3 Earnings?

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    McDonald's Corp. (MCD)

or Cancel Already have a watchlist? Log In

Nov 10, 2021 (Baystreet.ca via COMTEX) -- McDonald’s /zigman2/quotes/203508018/composite MCD +0.58% is the largest fast food chain on the planet. It proved to be a very interesting test case for the industry in the face of the global COVID-19 pandemic. Shares of McDonald’s have climbed 20% in 2021 as of close on November 9. The company released its third quarter 2021 earnings on October 27. Is it a good time to buy the stock? Let’s jump in.

In Q3 2021, McDonald’s delivered global comparable sales growth of 12%. Meanwhile, the company achieved 9.6% sales growth in the United States. System-wide sales jumped 16% to $29.9 billion and consolidated operating income increased 18%. Moreover, diluted earnings per share rose 24% to $2.76.

Casual dining establishments were hit very hard over the course of the pandemic. Fortunately, fast food chains were well suited to meet the challenges of the crisis. McDonald’s and its peers were forced to shutter in-room dining at many locations, but the presence of drive-thru service and its partnership with delivery apps like UberEats allowed the company to make a strong transition.

Total revenues rose 14% year-over-year to $6.20 billion in the third quarter. Meanwhile, revenues for the first nine months of 2021 increased 24% to $17.2 billion. Net income surged 76% to $5.90 billion or $7.86 on a per share basis.

Shares of McDonald’s possesses a solid price-to-earnings ratio of 26 at the time of this writing. It offers a 2.1% dividend yield. The fast food behemoth is still worth trusting for the long term as it navigates a post-pandemic world.

COMTEX_396664358/2559/2021-11-10T08:57:58

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/203508018/composite
US : U.S.: NYSE
$ 254.59
+1.46 +0.58%
Volume: 3.74M
Jan. 21, 2022 4:00p
P/E Ratio
26.28
Dividend Yield
2.17%
Market Cap
$190.24 billion
Rev. per Employee
$112,638
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.