Advertisement
investing

The Best Stock in Illinois: McDonald’s

We analyzed publicly traded companies based in the Prairie State to identify the best stock in Illinois to buy now.

We scoured the nation to identify the best stock in every state. McDonald's (symbol MCD) is the publicly traded company we picked in Illinois. The company headquarters is located in Oak Brook.

A word of caution: Since we selected a single stock from each state (plus one from D.C), and choices in some states are sparse, a few of our picks are best suited to investors comfortable with a higher degree of risk. This is not necessarily one of our 51 favorite stocks in the entire U.S., in other words.

McDonald's by the Numbers

  • Headquarters: Oak Brook
  • Share price: $154.80
  • Market value: $126.2 billion
  • Price-earnings ratio: 24
Advertisement - Article continues below

(Prices and data are as of June 22, 2017)

McDonald’s is in the middle of a multiyear turnaround. In 2015, the company initiated efforts to sell 4,000 corporate locations to franchisees by 2018, eventually reducing annual costs by $500 million. The company now plans to finish this process by the end of 2017. McDonald’s posted stellar first-quarter numbers, beating earnings estimates and posting a 4% gain in global sales for restaurants open at least a year, compared with the first quarter of 2016.

One quarter doesn’t make McDonald’s a high-growth company, say analysts at Credit Suisse. But the results are impressive at this stage of the company’s turn-around effort. They add that years of investment overseas, in digital platforms and kiosks, for example, are helping international sales pick up steam. Credit Suisse believes the stock could hit $165, a 6.6% bump from the current price, over the next 12 months.

Plus, McDonald’s remains a safe bet for income investors. Mickey D’s has raised its dividend in every year since it began paying one in 1976. CEO Steve Easterbrook said in April that the company plans to return $22 million to $24 million to investors from 2017 to 2019 in the form of dividends and share buybacks. The stock currently yields 2.4%.

Advertisement
Advertisement

Most Popular

11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020
How To Buy a Roth IRA When You Make Too Much To Qualify For One
Roth IRAs

How To Buy a Roth IRA When You Make Too Much To Qualify For One

With their tax-free growth and tax-free withdrawals, Roth IRAs are a great deal — if you qualify. If you don’t, well, there’s still a way to get into …
September 23, 2020
Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Best Bond Funds for Every Need
Investing for Income

Best Bond Funds for Every Need

In a changing market, it’s important to remember why we hold bonds in the first place.
September 15, 2020
Does a 40% Bond Allocation Make Sense in Today’s Portfolios?
retirement planning

Does a 40% Bond Allocation Make Sense in Today’s Portfolios?

For many investors, the short answer is no. Here’s why, and what you might consider instead.
September 7, 2020
Is the Stock Market Closed on Labor Day?
Markets

Is the Stock Market Closed on Labor Day?

The good news: Stock markets and bond markets alike get the day off for Labor Day. But traders don't get an early start to the weekend.
September 5, 2020