10 Reasons to Invest in McDonald's

A new chief executive, menu innovations and a growing delivery business are just some of the reasons Morningstar analysts are "McLovin" the fast food restaurant group 

R.J. Hottovy, CFA 2 January, 2020 | 10:58AM

mcdonalds

McDonald's (MCD) may seem like an unconventional choice for our top restaurant pick heading into 2020. Stagnant traffic trends in 2019 have called into question the lasting efficacy of the company's various "velocity drivers”, including its “Experience of the Future” store formats, digital ordering, and delivery.

Competition remains fierce, with several rivals seeing strong comparisons from plant-based burgers and premium chicken sandwiches, and promotional activity is likely to escalate into 2020. On top of this, the company recently had a high-profile management change, with McDonald's US head Chris Kempczinski assuming the chief executive reins from Steve Easterbrook in November.

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About Author

R.J. Hottovy, CFA  is a director of equity analysis with Morningstar.

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