McDonald’s High Dividend Yield Meets High Food Price Inflation

Summary:

  • MCD now features a dividend yield that’s near peak levels in at least 5 years, indicating attractive valuation.
  • But on the negative side, I am seeing high food price inflation as a key profit headwind.
  • It is impacting both consumer spending and MCD’s menu prices, both could decrease customer flow.
  • Valuation is not cheap either when growth outlook is factored in.

Close-up McDonalds outdoor sign against blue sky

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MCD stock: dividend yields near peak levels in at least 5 years

McDonald’s (NYSE:MCD) caught my attention in my screening of dividend stocks. In these screens, I look for dividend stocks whose yields are noticeably above or below their


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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