It’s no secret that restaurants have taken a major hit due to the coronavirus
pandemic especially those dependent on dine-in customers, with many still suffering
due to the continuing shutdown orders across the globe. McDonald’s (MCD),
however, has managed to power through the pandemic performing well in 2020 and
looks set to continue exceeding expectations throughout 2021. Don’t miss out on the
potential to profit by trading CFDs on MCD and more with CedarFX!
The temporary loss of in-store dining is expected to continue to negatively impact
McDonald’s and its franchisees. However new products along with exciting celebrity
collaborations could help McDonald’s maintain traffic to its restaurants through its
drive-throughs and delivery services. As such the prospects for solid capital gains
make McDonald’s appetizing for both short and long-term trading. Analysts also
believe that McDonald’s will get a nice boost from the disbursement of stimulus
checks in Q1 of this year.
Moving in the right direction
As the world’s largest fast-food chain by market capitalization, McDonald’s is no
stranger to resilience, gearing up ample post-pandemic opportunities to retain its
dominance. Last November, the restaurant chain announced its plans to bring back
the fan favourite McRib, launch a My McDonalds loyalty program and revive U.S.
restaurant unit growth. This month saw McDonald’s roll out three new chicken
sandwiches, the Crispy Chicken Sandwich, the Spicy Chicken Sandwich and the
Deluxe Chicken Sandwich, to win the fast-food chicken wars.
Before the pandemic, the company was losing customers to fast-casual chains and
higher-end burger joints. Additionally, within the fast-food restaurant landscape
Chicken has become king, as evidenced by the uber-successful launch of Popeyes’
chicken sandwich as well as Chick-fil-A’s continuing success, becoming the thirdlargest restaurant chain in the U.S. In October, McDonald’s also recorded growth
across all dayparts which is significant as the breakfast timeslot has continuously
been a sore point for sales due to the pandemic’s stay-at-home orders and vast
McDonald’s also launched its Famous Orders Platform at the height of the
pandemic, debuting with superstar rapper Travis Scott’s meal in September. The
collaboration was extremely well received, with videos of customers ordering the
meal going viral on social media, causing a shortage of Quarter Pounders in some
McDonald’s locations. Scott’s mass appeal with younger demographics made him an
attractive partner for McDonald’s as brands continue to struggle to reach customers
under the age of 34. Following this desire to continue to attract younger consumers,
the fast-food giant has since added Reggaeton star J Balvin’s combo meal to their
menu, promising more to come.
With almost all of McDonald’s US restaurants now operational via drive-throughs and
delivery, new products to be launched and more collaborations to come McDonald’s
appears to be positioned well for the coming year, with the potential for stock prices
to reach an all-time high.
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