Should you buy McDonalds stock? (November 2023)

I've started something new: https://www.3minutebreakdowns.com McDonalds stock analysis. Ticker MCD McDonalds reported earnings last week and the company blew past expectations. Total revenues were up 14% to 6.7 billion, net income grew 17% to 2.3 billion and same stores sales grew 9%. That means McDonalds has made 25 billion dollars of revenue and 8.3 billion of net income over the last 12 months. So based on the current market cap of 194 billion, the company is valued at around 24 times earnings. And that is at the bottom of its historical range. Just 6 months ago, the PE was well over 30. These days 95% of McDonalds revenue comes from its franchise business. Typically, McDonalds buys the land and the building and the franchise owner takes care of the rest. That’s why people often call McDonalds more of a real estate company than a restaurant business. And this is visible from the financials. McDonalds has $42 billion worth of property on its balance sheet which is more than most real estate investment trusts. And McDonalds loves the franchise model because it gives the company higher margins and lower risk. McDonalds captures a percentage of franchise sales and with over 40,000 restaurants worldwide, the revenue really stacks up. This business model has helped McDonalds become one of the best performing stocks of all time. #mcdstock #mcdonalds #investing #stocks