Expert opinion: ‘McDonald’s is core holding you want for recession’
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Jun 6, 2022
The U.S. fast food company did well in the great financial crisis of 2008.
Shares of the American multinational are down roughly 8.0% year-to-date.
McDonald’s Corp (NYSE: MCD) is a must-have for times of recession, says Lee Munson. He’s the Chief Investment Officer at Portfolio Asset Management.
Why Munson is bullish on McDonald’s stock
Shares of the fast-food chain are struggling to come out of the “red” this year, which, as per Munson, is all the more reason to secure a position in McDonald’s. On CNBC’s “Power Lunch”, he said:
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
What I love about McDonald’s is that they control their suppliers. They serve more food than any other corporation on this planet. They also have the muscle to try to capture some people that are going a bit lower on the rungs.
In late April, McDonald’s higher prices and strong international sales helped it perform better-than-expected in the fiscal first quarter. The stock trades at a PE of 21 at present.
McDonald’s Corp held its own in 2008
Munson remains constructive on McDonald’s also because it did well during the global financial crisis of 2008. He, therefore, expects it to do the same in the upcoming slowdown as well.
This is the core holding you want for a recession. Remember 2008, McDonald’s was up 11% that year. Its big decline was only 20% while something like a Chipotle went down 70% plus in the great financial crisis.
The U.S. economy unexpectedly shrank at an annualised pace of 1.40% in the first quarter of 2022. Wall Street, on average, sees a little under 15% upside in MCD from here.
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Food & Beverage
Stocks & Shares