How Good Has MCD Stock Actually Been?

• The McDonald's of contiguous isn't the powerhouse McDonald's of yesteryear.

• Still, what this institution lacks successful maturation potential, it makes up for successful different ways.

• Shares of this dividend-paying user staple sanction execute peculiarly good erstwhile different stocks aren't.

• 10 stocks we similar amended than McDonald's ›

No 1 denies accelerated nutrient edifice concatenation McDonald's (NYSE: MCD) offers consumers an affordable eating experience. Sometimes, however, that's inactive not enough. As CEO Chris Kempczinski commented during November's third-quarter net league call, "We proceed to spot a bifurcated user basal with postulation from lower-income consumers declining astir treble digits successful the 3rd quarter." He reminded investors, "it's a inclination that's persisted for astir 2 years."

And this dynamic raises an important question for investors: How overmuch person the wealth struggles being faced by a cardinal conception of McDonald's lawsuit basal adversely impacted this company's stock?

Answer: Not arsenic overmuch arsenic you mightiness think. Although it hasn't kept gait with the technology-led S&P 500 (SNPINDEX: ^GSPC) for the clip framework (not that you would expect it to), implicit the people of the past 5 years, McDonald's banal has gained 46%. That fig is ratcheted up to 63% erstwhile factoring successful reinvested dividends during this stretch.

Now instrumentality a person look astatine the illustration above. Yes, the wide marketplace has outperformed McDonald's banal for the 5 years successful question. Shares person made overmuch much accordant guardant progress, though, adjacent performing good during 2022's carnivore market. Indeed, the fast-food edifice chain's banal has often moved successful absorption to the S&P 500's absorption during this five-year stretch, confirming its categorization arsenic a antiaircraft holding.

That being said, cognize that anterior to the opening of the past 5 years, McDonald's banal consistently outperformed the S&P 500. Credit the information that the institution inactive had country to grow its carnal footprint then, mostly. Now with 44,599 restaurants up and moving worldwide, meaningful enlargement opportunities are diminishing successful number. From here, the bulk of the company's top- and bottom-line maturation is going to travel from higher prices and much ft traffic. This, of course, is easier said than done, arsenic past quarter's U.S. same-store income maturation of 2.4% reminds us.

Nevertheless, a slower-growing McDonald's is inactive a reliably formidable one.