Despite Worst U.S. Sales Loss Since Pandemic, Investors Are Snapping Up McDonald’s Stock

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McDonald's Corporation (NYSE: MCD) surprised investors by rising 5% on Monday, even after the company reported its worst U.S. sales decline since the pandemic. The stock closed at $275.88 on February 9, 2025, and climbed to $289.28 by the end of trading on February 10, 2025. The fast-food giant faced a double hit from an E. coli outbreak and inflation-weary customers, leading to a 1.4% drop in U.S. comparable sales during the fourth quarter. But global markets told a different story that lifted investor confidence to snap up McDonald’s stock.

McDonald's Stock Performance After the Latest Quarterly Report

McDonald's reported adjusted earnings per share of $2.83, meeting expectations, but revenue fell short at $6.39 billion, missing the $6.44 billion forecast. Net income dropped slightly to $2.02 billion from $2.04 billion the previous year. Despite these setbacks, McDonald's stock climbed nearly 5% due to strong performances in international markets, including the Middle East, Japan, and China.

While U.S. sales struggled, global same-store sales rose 0.4%, surpassing Wall Street’s expectation of a 1% decline. McDonald's international developmental licensed markets segment, which includes the Middle East and Japan, posted same-store sales growth of 4.1%. Even its international operated markets, such as Canada and the UK, saw modest growth.

Why Is McDonald's Stock Rising Despite the Company’s Sales Slump?

Despite the recent sales slump, McDonald's stock presents a compelling case for investors. The company quickly responded to the E. coli outbreak by switching suppliers and removing slivered onions from affected locations. The Centers for Disease Control and Prevention declared the outbreak over in December, and McDonald's has since invested $100 million to regain customer trust.

Inflation-battered customers may have tightened their wallets, but McDonald's $5 Meal Deal proved effective in boosting traffic. Although average check sizes decreased, customer visits remained positive, indicating resilience in the brand's appeal. Additionally, the company's plans to reintroduce popular menu items like snack wraps and launch new chicken strips signal a strategic move to reignite consumer interest.

McDonald's Stock Historical Rise and Fall

Since the COVID-19 pandemic, McDonald's stock has shown a remarkable recovery. It hit a pandemic low of $148.04 in March 2020 when markets crashed globally. However, the stock steadily climbed, reaching an all-time high of $298.12 in April 2024. As of February 10, 2025, McDonald's stock closed at $289.28, slightly below its peak but significantly higher than its pandemic lows.

This steady upward trajectory reflects the company's ability to adapt to challenges and capitalize on growth opportunities. However, some investors may question whether the current stock price leaves enough room for substantial profits. With the stock already near its all-time high, potential gains might be limited unless the company delivers exceptional growth in the coming quarters.

Plenty of Future Growth Opportunities for McDonald's Stock

Looking ahead, McDonald's plans to open 2,200 new restaurants in 2025, with about 1,000 of those in China. The company's international growth, coupled with recovery in the U.S. market, suggests strong potential for long-term gains. CEO Chris Kempczinski expressed confidence in the company’s recovery, predicting U.S. sales will rebound by the second quarter.

Moreover, the easing of informal boycotts in the Middle East and strong demand in Asia bolster McDonald's global sales outlook. The company’s ability to adapt to market pressures while maintaining strong international performance positions McDonald's stock as a resilient investment.

Should You Invest in McDonald's Stock Right Now?

With McDonald's stock showing resilience despite short-term challenges, investors may see this as an opportunity to capitalize on its recovery momentum. The company's proactive response to crises, strategic menu innovations, and aggressive expansion plans suggest it is well-positioned for growth.

However, with the stock price hovering near its all-time high, potential investors should weigh the risks and consider whether future growth will justify current valuations. While some risks remain, particularly with consumer spending patterns in the U.S., McDonald's global strength and brand loyalty offer a solid foundation for long-term investors. For those looking to invest, McDonald's stock could provide rewarding returns.

Is now the right time to invest in McDonald's stock? Tell us what you think!

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