Serving Up Alpha with a Side of Fries

🏷️ Ticker: $MCD ( ▼ 0.54% )  
💲 Price: $318.57
🧐 Strategy Focus: Stock Buy + Optional Covered Call
🗓️ Date: April 30, 2025

Serving Up Alpha with a Side of Fries

McDonald’s isn’t just slinging burgers - it’s delivering dependable returns in choppy markets.

With more than 38,000 restaurants globally and a brand synonymous with consistency, McDonald’s ($MCD ) continues to show why it belongs in long-term portfolios. Even with short-term headwinds in the U.S., international sales are booming, margins are expanding, and a U.S. rebound is likely later this year - especially if fan-favorite items like Snack Wraps return to the menu.

🔍 Why We’re Watching

📊 Resilient Performance

MCD is +9.84% YTD, outperforming the S&P 500 (-6.33%), and has returned nearly +90% over the past 5 years, with less volatility (Beta: 0.62). Defensive and consistent.

🌍 Global Momentum

International Operated Markets (UK, Germany, Canada) are outperforming. Localized strategies and operational strength are driving results abroad.

⚙️ U.S. Comeback Setup

Earnings came in a penny above estimates, but global comps fell short and U.S. comps disappointed—though the softness in U.S. performance was largely expected. The U.S. business has been soft, but management sees a second-half recovery fueled by value promotions, digital engagement (MyMcDonald’s Rewards), and operational efficiency.

💰 Solid Financials

• Revenue: $26B (2024)

• Operating Margin: 47%

• EPS: $11.38

• Dividend Yield: 2.25%

• Net Income: >$8.2B

📈 Trade Idea #1: Buy MCD Stock

If you're looking for a defensive growth play with dividend income and global reach, MCD fits the bill.

🛒 Buy MCD at $318.57

• Target: $340+ (12-month horizon)

• Why: Strong brand, global tailwinds, likely U.S. recovery, and rising EPS

• Bonus: Collect $7.08/share annually in dividends while you wait

For long-term investors, MCD is a steady compounder with a history of riding out market volatility while rewarding shareholders.

💼 Trade Idea #2: Sell a Covered Call for Income

Already own 100+ shares of MCD? Here’s a way to generate income while maintaining modest upside exposure.

▶️ Sell 1 May 30, 2025 $330 Call

• Premium Collected: $2.8

• If Not Called: You keep the $280 income

• If Called: You sell your shares at $330 (locking in capital gains + premium)

This is a great strategy if you think MCD will trade sideways or slightly higher in the short term. It also boosts your yield on the position while capping upside.

🧠 The Bottom Line

MCD is a global machine with pricing power, digital traction, and margin strength. Whether you’re a buy-and-hold investor or prefer collecting options income, this stock gives you multiple ways to win.

✅ For Stock Traders: Buy the dip, collect dividends, ride the global rebound.

✅ For Options Traders: Layer in a covered call to boost returns in the short term.

Want more trade ideas like this - plus weekly options plays and deep-dive breakdowns?

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