The pandemic took its toll on fast food restaurants as a whole. Some had to halt their operations for a couple of months, while others had to reduce them to drive-through services only.
But amidst this turmoil, McDonald’s came out with the best of it. The company did not lose its growth momentum a single time, and it’s been on a winning streak.
Furthermore, the company has just released its third-quarter earnings report, indicating that investors are about to experience something greater. With no further ado, let’s talk about it.
Customer traffic is increasing significantly
First, let’s get something out of the way. While McDonald’s growth momentum did remain on the positive side all this time, the company still got to see fewer daily attendees on its locations.
Luckily, with pandemic restrictions now getting lifted, this now seems to be a problem of the past. According to their most recent report, the company’s sales rose by 13%. For reference, it had only gone through an increase of 10% for the last two years.
What does it all mean for the bigger picture? For starters, it means that people are once again getting comfortable with the idea of attending restaurants in person. But things do not stop there.
When compared to other major fast food chains, McDonald’s is at the top of this trend. When asked about it, CEO Chris Kempczinski said that this was “a testament to our unparalleled scale and agility.”
Kempczinski also added that McDonald’s would continue to execute strategies to boost this growth. And some others to improve their restaurant experiences as well.
So, is the stock a buy?
It is worth mentioning that some investors were worried about McDonald’s prospects due to pandemic-induced inflation. Nonetheless, people are indeed buying again, not minding these meagre price increases.
The pandemic was but a slight hiccup for McDonald’s. One from which they are surely recovering with a bang in comparison.
Their profitability has always been one of the strongest and steadiest of the market. And things have not changed in the slightest, even with a pandemic at hand. In other words, McDonald’s is a company capable of making decent returns to any investor.