Matrix Asset Advisors on McDonald's Corporation

Matrix initiated a new partial position in McDonald's as the shares traded near a 52-week low. The fund views the company's historical financial performance as resilient, supported by a franchise model in which approximately 95% of restaurants are owned by franchisees and McDonald's collects rent, royalties and licensing fees. The business generates significant cash flow and has paid a dividend every year since its first dividend in 1976. Investor concerns around weaker customer traffic, inflation's effect on consumer spending and price competition have pressured the shares. Matrix believes McDonald's can work through these near-term challenges and views the lower valuation and 2.8% dividend yield at its purchase price as attractive.