MCD January sales

McDonald's, one of our favourite companies reported January sales. And the US beat in sales was perhaps what saw the stock up as much as 2.6 percent in normal trading hours. Still a way away from their 52 week trading high, I suspect that everyone worried about higher food prices AND perhaps more to do with out with the defensives (like MacDee's) and into the consumer discretionary sector. That no doubt has weighed on markets globally. But check out their US sales beat reasons:

"In the U.S., comparable sales increased 3.1% for January as customers enjoyed an outstanding restaurant experience featuring compelling value, iconic core favorites alongside innovative new offerings and the everyday ease of McDonald's. The ongoing appeal of McDonald's beverage line-up, including McCafe premium hot chocolate and Caramel Mochas, the popularity of Chicken McNuggets, and the national launch of Fruit & Maple Oatmeal all contributed to January's results."

Nice, order me one Caramel Mocha and Fruit & Maple oatmeal please. Wow, indulgence and I guess the menu shift towards "health" has been the theme over the last five years or so. Smoothies, wraps and now oatmeal. Here are the sales update table from the official release ---> McDonald's January Global Comparable Sales Rise 5.3%:

The analyst estimates, for what it is worth have a 12 month price target of 87 USD (currently 75.50) and FY earnings of around 5 USD, that puts the stock on a 17.4 times multiple at that 87 USD target price. You could have bought the stock twenty years ago at 7 Dollars a share. The dividend yield at these levels is a juicy 3.25 percent. So 61 US cents a dividend per quarter equals 2.44 USD a year. At that target price the yield is still 2.8 percent. And I shall remind you of the US government debt yields:

Man, I don't know about you, but I know which investment makes more sense to me.