McDonald’s (NYSE:MCD) is the largest fast food chain on the planet. It proved to be a very interesting test case for the industry in the face of the global COVID-19 pandemic. Shares of McDonald’s have climbed 20% in 2021 as of close on November 9. The company released its third quarter 2021 earnings on October 27. Is it a good time to buy the stock? Let’s jump in.
In Q3 2021, McDonald’s delivered global comparable sales growth of 12%. Meanwhile, the company achieved 9.6% sales growth in the United States. System-wide sales jumped 16% to $29.9 billion and consolidated operating income increased 18%. Moreover, diluted earnings per share rose 24% to $2.76.
Casual dining establishments were hit very hard over the course of the pandemic. Fortunately, fast food chains were well suited to meet the challenges of the crisis. McDonald’s and its peers were forced to shutter in-room dining at many locations, but the presence of drive-thru service and its partnership with delivery apps like UberEats allowed the company to make a strong transition.
Total revenues rose 14% year-over-year to $6.20 billion in the third quarter. Meanwhile, revenues for the first nine months of 2021 increased 24% to $17.2 billion. Net income surged 76% to $5.90 billion or $7.86 on a per share basis.
Shares of McDonald’s possesses a solid price-to-earnings ratio of 26 at the time of this writing. It offers a 2.1% dividend yield. The fast food behemoth is still worth trusting for the long term as it navigates a post-pandemic world.
