Mc Donald's stock, Economic indicators?

How does GDP, inflation rate, unemployment rate, consumer confidence index, or other economic indicators each relate to Mc Donald's stock? How would each indicator affect Mc Donald's or the restaurant industry as a whole?

1 Answer

  • 9 years ago
    Favorite Answer

    As a retail stock, MCD would be impacted by all of the factors you cite.

    The degree of impact would be very difficult, perhaps impossible, to quantify.

    It would be safe to say that as consumer confidence goes up, and wages rise, people would tend to eat at MCD more, so the stock could react positively.

    However, the macroeconomic picture - like the Eurozone contagion, and the impasse with the "super committee", and the imminent decline of the US$ - will impact MCD negatively.

    What is an individual investor to do? You take your choices, and you pick your poison.

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