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
(Prices and data are as of June 22, 2017)
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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%.
-
Nasdaq Leads as Tech Stages Late-Week Comeback: Stock Market TodayOracle stock boosted the tech sector on Friday after the company became co-owner of TikTok's U.S. operations.
-
Disney’s Risky Acceptance of AI VideosThe Kiplinger Letter Disney will let fans run wild with AI-generated videos of its top characters. The move highlights the uneasy partnership between AI companies and Hollywood.
-
Ask the Editor: Itemized DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on itemized deductions claimed on Schedule A of Form 1040
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Dow Climbs 559 Points to Hit a New High: Stock Market TodayThe rotation out of tech stocks resumed Tuesday, with buying seen in more defensive corners of the market.
-
Stocks Rally as Investors Buy the Dip: Stock Market TodayMost sectors are "go" only a day after talk of bubbles, extended valuations and narrow breadth undermined any kind of exuberance.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
