McDonald’s continues its green streak for seven straight sessions

McDonald’s (NYSE:MCD) continued gains for a seventh straight session as the stock closed 0.02% higher on Friday at $303.70.

The Illinois-based fast food restaurant company added 3.34% over the course of the last six trading days. The stock has gained 2.71% so far this year, compared to an over 20% rise in the broader S&P 500 Index.

McDonald’s (MCD) is up 6% over the past one month. The stock closed 1.06% higher on Thursday at $303.65.

McDonald’s on Thursday raised its quarterly dividend by 6% to $1.77 per share from the prior dividend of $1.67.

The fast-food company is attracting attention as its traffic trends improve across customers. Recently, the company has benefited from positive buzz around its new Collector’s Meal, which features a choice of breakfast or lunch items along with one of six collectible cups.

Another traffic driver for McDonald’s recently has been the $5 Meal Deal, which launched in late June and came with a 4-piece Chicken McNugget selection, fries, a drink, and the customer’s choice of either a McChicken or McDouble.

Improved restaurant traffic is being viewed positively by analysts. Seeking Alpha analysts are bullish on the stock and have rated it as a BUY.

Among Wall Street analysts, 24 out of 37 analysts recommend BUY and above, 13 recommend HOLD, and none recommend SELL.

Analyst Jason Ditz rates the stock a HOLD and believes that McDonald’s (MCD) has significant debt and negative shareholder equity, but maintains a current ratio above 1.0, indicating responsible capitalization for now.

“The company faces risks from high debt, competition, and inflation, which could impact profitability and credit rating,” Ditz added.