Is It Too Late to Buy McDonald's Stock?
Believe it or not, shares of fast-food chain McDonald's (NYSE: MCD) are up more than 100% from their pandemic-prompted low and are trading at nearly three times their price from just 10 years ago. It's surprisingly kept pace with the S&P 500 for many years and even outperformed the index when factoring in its dividends. Given the highly competitive, low-margin nature of the restaurant business, this is nothing short of incredible.
It's such a strong performance, in fact, that interested investors may be too intimidated to dive in even after the stock's modest pullback from January's high. The frothy price-to-earnings (P/E) multiple of nearly 23 isn't exactly encouraging them, either.
This is one of those cases, however, where you might want to worry less about a stock's history and valuation, and worry more about the quality of the underlying company.
Source Fool.com
