The last few years have been challenging for food firms. From the Covid-19 pandemic to supply chain issues caused by the ongoing war between Russia and Ukraine, it has not been an easy period of time for these companies. In the wake of World Food Day, in conjunction with AvaTrade and also using some insights from Deshe Analytics, we take a look at performance of some of the bigger food related stocks, including restaurants, packaged foods, and confectioners.
#1. McDonald’s [NYSE:MCD]
2022 has not been so kind to the world's largest fast-food restaurant chain in terms of its stock market performance. While 2021 saw the company’s share price rise significantly, largely as a result of the reopening of its restaurants, the same cannot be said this year. The stock is currently down 7.22% YTD, representing the lowest price-to-earnings ratio for the firm since the 2020 market crash, when lockdowns were at their worst and nearly all of the company’s restaurants were closed.
However, despite the fast-food chain's stock falling, 2022 has largely been a positive year for McDonald’s, and we have seen stock rallying since the start of this month. Sales are up, while restaurant-level earnings have increased by 8% after accounting for currency exchange rate shifts. Cash flow was strong once again, which suggests McDonald's will have no trouble increasing its dividend once more, for the 46th consecutive year.
Deshe Analytics Sector Grade: 70/100 (Hold)
Want the full story? Start a free trial of The Armchair Trader Plus+ today.
Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.
Free 28 day trial. Cancel anytime.
Log In or Sign Up to Armchair Trader+Already a member? Log in here:
Not a member? Sign up now or see the membership benefits
Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.
