Investors will continue to buy stock in McDonald’s.
Investors will continue to buy stock in McDonald’s, as the fast food giant released vital information about a new value menu. On January 4th, 2018, McDonald’s will set in motion a new $1, $2, and $3 menu tier grouping. Their one dollar tier will include either a McChicken, Cheeseburger, or a sausage burrito, and any size soft drink. The $2 menu includes their tasty two-piece buttermilk Crispy Tenders, Bacon McDouble, or Sausage McGriddles, and a small McCafe drink. A Classic Chicken Sandwich, Triple Cheeseburger, or the Sausage McMuffin with egg, and Happy Meal rounds out the $3 group. Costumers will be happy, and investors will buy stock in MCD. The question is “should I buy McDonald’s stock?” The answer is not that easy.
Last year to date, MCD has been up over 65%, which is an incredible turnaround from a lackluster 2016. President of McDonald’s USA, Chris Kempczinski said: “We built this new menu with variety and value firmly in mind. Whatever our guests crave – a delicious meal, a new taste, a mid-day snack or a family treat – they will find that $1 $2 $3 Dollar Menu provides them with value and choice.” He continued: “We have lost a number of our customers over the last few years because we didn’t have a compelling value proposition. We expect this to win back customers who’ve been disappointed.”
Founded in 1940, McDonald’s has always reinvented themselves, keeping up with the social trends. While their customers have gone to Wendy’s and Burger King, their market value has risen in this past year. So then again I will ask this question: “Should I buy McDonald’s stock?” My answer would be yes. But let it go down a bit. Once you are ready to go in, never buy your full amount. This will put you at a disadvantage from the start. Remember that it is never easy to time the market.