McDonald's: Becoming A Dividend King Didn't Help The Price, But It's Still A Long-Term Buy

McDonald's Corporation has underperformed, down 18% YTD, despite solid cash flow growth and its 50th consecutive dividend increase. Recent quarters showed slowing traffic, weaker comparable sales, and execution issues, driven by inflation and higher fuel prices impacting consumer demand. MCD's McDonald's > NEXT strategy, disciplined product launches, and plans for 2,600 new stores by 2026 aim to drive future growth as inflation moderates. I reiterate a Buy rating, seeing the current valuation as attractive for long-term investors, though near-term volatility and new lows are likely. Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » Getty Images Introduction McDonald's Corporation (MCD), one of the world's most recognizable and valuable real estate companies, has underperformed, down 17% over the past year and 18.4% year-to-date. At first glance, the weakness may seem surprising. Especially since they also managed to This article was written by Dividend Collection Agency 9.68K Followers Follow Formerly known as "The Dividend Collectuh." Top 1% of financial experts on TipRanks. Contributing analyst to the iREIT+Hoya Capital investment group. Dividend Collection Agency is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDCs, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.