Food prices may have surged more than 12% this year, but eating out has only increased by half that amount, leading to higher sales for McDonald’s, making the company more attractive to stock buyers. (according to an insider). McDonald’s operates primarily in a franchise environment, and the company’s advances in technology and “digital marketing” make it an attractive acquisition target in the current market, according to Ivan Feinseth, financial analyst at Tigress Financial Partners. (via TipRanks).
Not only has McDonald’s pledged to create more opportunities for its diverse franchise owners last year, but sales for fast food companies are expected to grow 3.7% in the second quarter of 2022, while rising fast food prices will help consumers proved to have no effect on the desire for Eat out (per CNN). Fast food restaurant traffic has increased this year, especially in June, where he increased by 6%, while McDonald’s increased by 16.7% (via Pacer.ai).
With sales up 10% in the second quarter of this year, Feinseth thinks McDonald’s is one of those companies that’s happy with its potential. Buying McDonald’s stock looks like a safe bet, according to one stock analyst, aside from the inflation news that diners have been waiting for amid expectations of lower dining costs.