McDonald’s earnings jumped a strong 19% a beat estimates in the most recent period. Revenue rose 10% to $5.67 billion, also topping forecasts. In addition, same-store sales, which is a huge metric for the company, jumped 11.8%. While that number represented a big drop from prior quarters, it was much better than gloomy Wall Street expectations. U.S. comparison rose 3.5%, barely eclipsing the consensus target.
Shareholders are paid a delicious 2.39% dividend. UBS has a Wall Street leading $290 target price. McDonald’s stock has a consensus target of $280.57, and the close on Thursday was at $229.00.
PepsiCo
This top consumer staples provider soon will be supplying the goods for summer picnics, and the stock also resides on the Conviction List at Goldman Sachs. PepsiCo Inc. (NYSE: PEP) operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s and Ruffles potato chips; Doritos, Tostitos and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips and Fritos corn chips.
The Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, natural granola and oat squares, as well as the recently name-changed Aunt Jemima mixes and syrups, and Quaker Chewy granola bars, Cap’n Crunch cereal, Life cereal and Rice-A-Roni side dishes.
Its North America Beverages segment offers beverage concentrates, fountain syrups and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Tropicana Pure Premium, Sierra Mist and Mug brands, as well as ready-to-drink tea and coffee, and juices.
Shareholders receive a 2.81% dividend. The BofA Securities price target is $190. The consensus target is $183.75. PepsiCo stock ended Thursday trading at $161.20 per share.
We purposely avoided big-box retail leaders after the dreadful numbers Target posted this week. We focused on companies that have products or services that are needed and purchased regardless of what the economy does. All these top stocks will continue to pay dividends to patient buy-and-hold investors until things brighten on the economic front. To be frank, it could be this time next year before we see solid improvement.
Originally posted at 24/7 Wall St.
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