What’s McDonald’s Doing Right That Its Stock Went Up A Massive 75% Between 2016 and 2019 While Revenue Fell?
McDonald’s stock had gained a massive 75% in the last 3 years or so, prior to the pandemic-driven market fall. But how did the company manage to pull off this tremendous feat considering its revenue fell nearly 15% during the same period? Here is why - As it turns out, not only did McDonald’s manage to expand its earnings significantly, despite a steep revenue decline, the investors rewarded this achievement by putting a higher value on the company’s future growth - thus, expanding its P/E ratio significantly.
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