I love McDonald's. I love the fries, the chicken nuggets, the burgers, the chicken sandwiches, and the sausage egg McMuffin. I even love the Happy Meal toys. Writing this post is making me hungry. But I'm not on the subject because of yesterday's food budget post.
Recently, Five Cent Nickel published a list of the most consistent dividend-paying stocks and McDonald's was on there. And the New York Times recently wrote about McDonald's as a counter-recessionary success story. McDonald's had been off my radar for awhile, but these two things reminded me that McDonald's has been a great investment for most of its history.
I bought stock in McDonalds in January 2003. It was actually the first individual stock I ever bought, and I don't dabble in individual stocks very often. I bought it because I'd read an article about how to estimate the down-side price of a stock and McDonald's was one of the examples of a price that seemed to be under-priced. I wish I still had that article, as they really were right. McDonald's turned out to be a very good investment for me:
Bought: 1/13/06 @ $17.35I sold it to free up some cash for my condo, but now I wish I'd bought even more shares and held onto them:
Sold: 4/21/06 @ $34.87
Current share price as of 1/22 close of market: $58.72Check out the history at Google Finance. In tough times, I guess a lot of people are looking for cheap meals, and McDonald's seems to be well-positioned to take advantage of that.