McDonalds Example

About McDonalds 

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 Trades

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. 

mcdonalds_equity_chart_2020

 

StockBuy DateSell DateProfit*
McDonald's21 May 202013 October 202023.9%
 
* All Profit data quoted is Total, Gross returns expressed in local currency terms.

Warning: Past performance should not be taken as an indication or guarantee of future performance.
Warning: Past performance is not a reliable guide to future performance. 
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.

 

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Warning: Nothing presented on this website constitutes investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any person. You should not act on it in any way and are advised to obtain professional advice suitable to your own individual circumstances. The value of your investment may go down as well as up. You may lose some or all of the money you invest. Past performance should not be taken as an indication or guarantee of future performance; neither should simulated performance. The value of securities may be subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities.
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