Top-7 Anti-crisis Stocks at Wall Street: McDonald's
McDonald's looks like another undervalued stock that could meet a wave of buying-on-dips again at any moment, even if it still uses a chance to fall deeper at first. The market value of the famous chain of fast food outlets lost more than 18% since the beginning of the year, but it suffered the bulk of the losses during the course of Russian military action in Ukraine, when McDonald's management announced its decision to close all its restaurants in both countries for an indefinite period of time. McDonald's revenue in Russia and Ukraine was about 9% of its total sales, so that's a remarkable part of its business.
Nevertheless,
it does not seem as if McDonald's was going to leave these countries for ever, since
it did not make such statements and, most importantly, it also continues to pay
rent and average salaries to all its employees, even retaining a charity
program for children. It seems that the reasons to make a pause for McDonald's
are more likely to be logistical and financial ones, for example, the fall in
the exchange rate of the Russian currency and difficulties with supplies, than
purely political factors. This inspires hope for a full recovery of its
business schemes within two or three months, if the hot phase of the conflict
will end before this time. Given the high ability of McDonald's to handle
crises, based on the fact that the demand for a cheaper style of fast food
usually increases during the time of lower incomes, the current discount for
McDonald's shares looks attractive. All the time throughout 2021, McDonald's
have never dropped below $200 per share, while this March the price came
already in the range of between $217 and $225.