11 Best Coffee Stocks to Buy Now

3. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 67

McDonald’s Corporation (NYSE:MCD) is a food service retailer with over 40,000 locations in over 100 countries. The company operates and franchises restaurants, and its operations are divided into the following segments: United States, International Operated Markets, and International Developmental Licensed Markets & Corporate. Its McCafé segment offers a range of coffee options, including lattes, cappuccinos, mochas, blended ice frappés, smoothies, triple-thick shakes, and even limited-time seasonal offerings.

The company holds a competitive advantage due to its market standing, as McDonald’s has become a household name worldwide. It has paid a dividend since 1976 and has raised its annual per-share dividend every year for the past 48 years. Given its sheer size and market standing, McDonald’s Corporation (NYSE:MCD) is in a position to continue this trend.

On March 20, J.P. Morgan analyst John Ivankoe maintained a Buy rating on McDonald’s Corporation (NYSE:MCD) and set a price target of $300.00. Erste Group analyst Stephan Lingnau also upgraded the company to Buy from Hold on March 17, saying it has “a very high and stable operating margin that is well above that of its competitors.” The analyst expects McDonald’s Corporation (NYSE:MCD) to continue a stable performance over the coming few quarters, with its stock price expected to “continue to rise.”