McDonald’s Corporation (NYSE:MCD) experienced its largest one-day decline all year at the bottom of the noon hour on September 12. As of this writing the stock is down 3.36%. Fears have abounded after the devastation caused by Hurricane Harvey and Hurricane Irma in Texas, Florida, and other southern U.S. states. McDonald’s has a very strong presence in these states, the second and third most in the country, and sales are expected to take a big hit in the wake of the flooding and destruction. The company has more than 2,000 chains in Texas and Florida.
McDonald’s joins other restaurant chains with a strong presence in the states affected as sales concerns abound. It is important to note that no concrete numbers have yet been released by the companies but the sour mood is based on projections from third parties.
McDonald’s stock is still up 28% in 2017 thus far. It boasts a dividend of $0.94 per share representing a dividend yield of 2.4%. The company released its second quarter results on July 25. Results beat expectations across the board. Revenue was reported at $6.05 billion compared to $5.96 billion expected, U.S. same-store sales increased 3.9% compared to 2.9% expected – globally same-store sales grew 6.6%.
Speculation in the midst of the hurricane damage should not overshadow just how impressive McDonald’s results have been in recent quarters. This recent decline could be an attractive buying opportunity for those willing to bet on a knee-jerk reaction to a national disaster.
