5 Stocks to Buy Before the Next Recession

4. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 57

McDonald’s Corporation (NYSE:MCD), a popular American multinational fast food corporation, is one of the top stocks to acquire before recession hits. In addition to more customers preferring cheap food offered by McDonald’s Corporation (NYSE:MCD) during a recessionary period, the company has a fortress balance sheet which will allow it a healthy cushion to weather the economic slowdown. This is indicated by the company’s consistently growing dividend distributions for 45 years in a row. 

It is also interesting to note that McDonald’s Corporation (NYSE:MCD) is known for owning the properties where its outlets are located, which means that McDonald’s Corporation (NYSE:MCD) also collects rent from its franchises all over the world, in addition to directly selling to customers via the outlets operated by the company itself. McDonald’s Corporation (NYSE:MCD) capitalizes on a slow real estate market during recessions, and purchases more outlets at lower prices, making it an ideal stock to purchase in the upcoming market environment. 

On March 15, Oppenheimer analyst Brian Bittner lowered the price target on McDonald’s Corporation (NYSE:MCD) to $280 from $290 and kept an Outperform rating on the shares. McDonald’s Corporation (NYSE:MCD) stock is down 9% since Russia invaded Ukraine and the analyst suggests investors treat the pullback as a buying opportunity. His analysis suggests that the impact of the Ukraine war is now completely factored in McDonald’s Corporation (NYSE:MCD)’s stock. 

Renaissance Technologies is the leading shareholder of McDonald’s Corporation (NYSE:MCD) as of December 2021, with 1.75 million shares worth $470.4 million. Overall, 57 hedge funds were bullish on the stock in the fourth quarter of 2021.