The nation's slow economic growth rate of 1.1% in the first quarter and increasing interest rates and spending cutbacks indicate that a recession may be inevitable. Nevertheless, McDonald's appears to be a resilient company that can withstand the economic downturn. Despite price hikes, the fast-food giant has demonstrated strong sales, making it a worthy addition to any investment portfolio.
McDonald's impressive same-store sales growth rate of 12.6% during Q1 2023 indicates robust demand. Even during the Great Recession, the company outperformed the S&P 500 and earned positive returns. While the company's shares are currently trading at a high earnings multiple, its cost-cutting efforts and potential future earnings growth suggest that the stock may still prove to be an excellent long-term investment option. Additionally, McDonald's dividend provides a reliable source of recurring cash flow for investors. Overall, McDonald's stock may be one of the most promising investment opportunities during a recession.