McDonald's Steady Growth Masks Stock Price Decline

McDonald's has reported steady growth in its global comparable sales over the past four quarters, with a streak of positive results. In the first quarter of this year, comparable sales grew 3.8%, following on from previous quarters where sales increased by 5.7% and 3.6%. The company's U.S. business also showed resilience, with comparable sales growing 6.8% in the fourth quarter and 3.9% in the first quarter of this year.

The company's profits have also been strong, with operating income rising 12% to nearly $3 billion in the first quarter. Revenue grew 9% year over year to about $6.5 billion, while earnings per share came in at $2.78, up 7%. The company's dividend yield is currently around 2.7%, and shares cost about 22 times earnings.

Despite this growth, the stock price has declined by 21% from its high of $341.75 to its current price of $270.64. However, this decline is largely due to a decrease in the price investors are willing to pay per dollar of McDonald's earnings, rather than any decline in earnings themselves.