McDonald's Corp

McDonald's is a multinational fast-food chain known for its resilient financial performance. With 95% of its restaurants owned by franchisees, the company benefits from a stable revenue model through rent and royalties. Despite current concerns about weaker customer traffic and inflation's impact on spending, we believe McDonald's will navigate these challenges effectively. The stock's recent decline presents a buying opportunity, especially given its consistent dividend payments since 1976. At our purchase price, the dividend yield was 2.8%, making it an attractive addition to the portfolio.

McDonald's is a multinational fast-food chain known for its resilient financial performance. With 95% of its restaurants owned by franchisees, the company generates significant cash flow and has consistently paid dividends since 1976. Despite current concerns about weaker customer traffic and inflation's impact on spending, we believe McDonald's will navigate these challenges. The current lower share price, combined with a healthy dividend yield of 2.8%, makes it an attractive investment for the MDI portfolio.

I believe PAR has a real shot at winning McDonald’s and their 45,000 locations worldwide. A McDonald’s win would represent well over $100M per year in recurring revenue for PAR. McDonald’s is a true whale for PAR, which ended the quarter with $288M in recurring revenue. Why could McDonald’s make sense and be in 'play'? PAR’s success with Burger King makes a McDonald’s implementation plausible because PAR has proven success at scale. McDonald’s is also experiencing technology challenges, with entire countries reporting hours-long outages in 2024. I believe they are a 'finalist' building a version for McDonald’s that reflects McDonald’s menus and kitchen configurations and successfully integrates with personnel systems and online ordering partners.

PAR has a real shot at winning McDonald’s and their 45,000 locations worldwide. A McDonald’s win would represent well over $100M per year in recurring revenue for PAR. McDonald’s is a true whale for PAR, which ended the quarter with $288M in recurring revenue. McDonald’s has been a hardware customer of PAR for 40+ years and is already a TASK loyalty customer in Asia, indicating some level of satisfaction with TASK. The potential for a pilot program and the integration work being done for McDonald’s reflects a significant opportunity for PAR's growth.