McDonald’s is one of the world’s most recognisable and trusted consumer brands. A Quick Service Restaurant (QSR) chain with unrivalled scale and financial strength, the Desk decided that the company was well placed to grow market share both during and after the COVID-19 pandemic. Digital, Delivery and Drive-Thru were key differentiators for McDonald’s in 2020. Likewise, significant past investments in IT and store remodelling (now largely complete) boosted performance.
The team identified McDonald's as a potential COVID-19 winner given it's structural advantages (e.g. Digital, Delivery and Drive-Thru) and defensive attributes in a highly uncertain demand environment. This thematic play meant buying the stock in May 2020 and selling it in October 2020 generating a c.24% return for investors in under five months.
|Stock||Buy Date||Sell Date||Profit*|
|McDonald's||21 May 2020||13 October 2020||23.9%|
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