The fast food chain McDonald’s Corp. (NYSE: MCD) recently reported its second quarter results to show that the network has completely recovered following a challenging period during the pandemic.
MCD stock like-for-like sales were up 41% from a drop of 24% a year ago. The company showed growth in all its markets of presence at the same time: in the US, it grew by 26%, in developed international markets such as France and the UK, it grew by 75%, and in emerging markets, including Brazil and China, it grew by 32%.
An outcome such as this may be a testament to the strength of McDonald’s Corp. (MCD) business model. Following an initial decline in the impact of negative factors, the company experienced a rapid recovery. In recent months, MCD restaurants have become more profitable because of cost savings, menu optimization, and an increased emphasis on online ordering and delivery.
In the past six months, the operating margin increased to 43 percent of sales. In addition to the increase in prices in the face of high demand, a second factor contributing to the profitability growth of the company is the orientation of the customer to more expensive items.
Thus, McDonald’s Corp. (MCD) still has a strong business, and it is quickly recovering from its current financial position. Despite significant progress in mass vaccination, there is still a risk that a new COVID-19 pandemic could occur.
At the same time, McDonald’s has demonstrated it can handle even the most challenging conditions and that it has significantly increased its expertise in digital ordering and delivery.
The stock of MCD completed the last trading session at $234.83. The company has a market cap of $176.17 billion.