McDonald's (NYSE:MCD) has announced the much-anticipated return of the McRib sandwich, a year after its staged "farewell tour". The pork delicacy is set to make a comeback next month, but it will not be available nationwide. This move is in line with the company's scarcity marketing strategy for the McRib, which is designed to create consumer urgency.
The McRib's unpredictable availability has been likened by McDonald's CEO Chris Kempczinski to the retirement uncertainties of sports legends like Michael Jordan and Tom Brady. This marketing approach has proven to be highly successful, leading to the sale of over 60 million McRibs in three years despite its limited availability.
The success of McRib has even sparked competition in the fast-food industry. Arby's launched a similar sandwich in 2021, taking a playful jab at McDonald's in its marketing campaign. This return of the McRib seems to indicate that McDonald's is continuing with its strategy of leveraging scarcity to drive consumer interest and sales.
According to InvestingPro, McDonald's is a prominent player in the Hotels, Restaurants & Leisure industry with a market cap of 185.67B USD. The company's stock is currently trading at a P/E ratio of 23.27, which is considered low relative to near-term earnings growth as per InvestingPro Tips. McDonald's operates with a high return on assets of 16.05%, indicating efficient use of its resources.
The company has also shown a positive trend in its financial performance. The latest data from InvestingPro shows a revenue growth of 2.54% and a gross profit margin of 57.45%. This profitability is further supported by an EBITDA growth of 7.82% and an operating income margin of 45.89%.
In terms of shareholder returns, McDonald's has a strong track record, having raised its dividend for 47 consecutive years. The company's dividend yield stands at 2.39% with a dividend growth of 10.14%. This consistency in maintaining dividend payments, as highlighted in InvestingPro Tips, has made it an attractive investment for income-focused investors.
For those interested in investing, it is worth noting that the stock is currently in oversold territory as per the RSI metric provided by InvestingPro Tips. This could present a potential buying opportunity. For more insights and tips, you can check out InvestingPro, which offers a wealth of additional tips and real-time data.
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