McDonald’s Corporation (MCD) Deserves a Place in Your Portfolio

The strategies

The key takeaway for investors is that the numbers are still up, on the whole defying odds. McDonald’s has some solid strategies to keep its growth trajectory intact. In the U.S., the value menu is still a focus area as the company tries to win over customers by consistently offering everyday value as against aggressive discounting campaigns.

Overall McDonald’s Corporation (NYSE:MCD) has four areas of emphasis – chicken, breakfast, beverages, and beef. Accordingly, we have the Chicken McWraps, Egg White Delight, Blueberry Pomegranate smoothies, and the Quarter Pounders that are all looking good.

Key strategies are taking form and shape in overseas markets as well. So in the U.K. we have the new smoothies, in Russia the growing number of Big Mac options and in France the new item additions to the popular Casse-Croute entrée and drink combo. Meanwhile, in Japan there are limited time offerings like Chicken Teritama and sharing options like Mega Potato. And in China there are the ongoing efforts to bring more menu options in line with local tastes.

Concurrently, the restaurant modernization program is going on in full swing. McDonald’s is targeting to renovate the exteriors for 50% and interiors for 60% of its global locations. In the US, about 10% of its restaurants will be renovated this year.

The inference

McDonald’s Corporation (NYSE:MCD) has survived many ups and downs in the past and has always come out stronger and the current times will not be an exception. The company is holding up despite the numerous challenges that it is facing and has good strategies in the form of its value platforms, menu innovations, store modernizations, etc. Investors can stay assured the attractive dividend yield of 3.1%that they receive from the Golden Arches is well protected.

The article McDonald’s Deserves a Place in Your Portfolio originally appeared on Fool.com and is written by Eshna De.

Eshna De has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide (NYSE:BKW) and McDonald’s. The Motley Fool owns shares of McDonald’s. Eshna is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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