Matrix Asset Advisors, Inc. on McDonald's Corporation

Matrix initiated a new partial position in McDonald’s after the shares traded near a 52-week low. The franchise model is central to the thesis because roughly 95% of restaurants are owned by franchisees who bear employee wages, local utilities, and food costs, while McDonald’s receives rent, royalties, and licensing fees. The company has historically delivered resilient financial performance, strong cash flow, and a dividend every year since 1976. Matrix believes weaker traffic, inflation pressure, and price competition are near-term issues that the company can work through, making the lower share price and 2.8% purchase yield attractive.