In recent weeks, McDonald’s Corporation (NYSE:MCD) has shown once again that it is in serious transition mode from a satisfied market leader to a hungry competitor. And now, Nomura is showing MCD stock some respect.
The first jolt to MCD came when McDonald’s announced that its popular breakfasts would be served all day. Then there was the talk about creating a fresher and healthier menu. The company also announced initiatives to get its eggs from less intensive producers that provide a better environment for the animals.
All welcome changes, and all reflected in McDonald’s stock. Shares are up 23% since announcing all-day breakfast, though they’re mostly flat in what has been a challenging year for restaurant stocks as a whole.
But if you look out longer, you can see the real value in MCD stock is its long-term performance. So does Nomura, which just upgraded shares from “neutral” to “buy,” in large part because the Golden Arches are innovating again.
MCD Stock Needs (And Is Getting) New Ideas
MCD is returning close to 10% a year for the past decade. That is a very respectable return, and its moves in recent quarters shows that it is committed to keeping that growth trend growing.
And don’t forget: McDonald’s is no slouch on the dividend side. It is a Dividend Aristocrat, raising its dividend every year for the past 40 years. That’s a very impressive record that is matched by only a handful of companies.
The dividend yield on McDonald’s stock currently sits at 3.1%, which is still beating inflation by a good stretch.
To keep this growth trend going, MCD recently announced some new ideas to further reinforce its ambition to be a healthier fast food restaurant.