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The Happy Meal Grows Up: McDonald’s Stock (MCD) Breakdown

When I was in elementary school, my teacher had a large art box in her room that she would let us dig through on occasion.

The box was full of old McDonald’s toys.

One specific toy I remember was a set of old California Raisin figurines, which I found the coolest.

As a kid, I was obsessed with these little toys.

So imagine my delight when McDonald’s announced the Cactus Plant Flea Market Box aka the adult Happy Meal.

But it looks like this promotion is a bit of a flop.

Which made me wonder: How many different promotions and collaborations were in that art box?

McDonald’s Corp. (NYSE: MCD) stock earns a “Neutral” 42 out of 100 on our proprietary Stock Power Ratings system.

Let’s take a closer look at the promotional ventures of its famed Happy Meals through the years.

MCD’s Happy Meal History

In 1977, the regional advertising manager for McDonald’s St. Louis came up with the simple idea of creating a meal just for kids.

In 1979, the U.S. saw its first Happy Meal. It contained a hamburger, french fries, cookies and, of course, — a toy.

Through the ‘70s and early ‘80s, McDonald’s collaborated with some impressive brands for its toys, including Star Trek, Hot Wheels and even Ghostbusters.

In 1986, things got a bit spooky for MCD, as it introduced “Boo Buckets” for the first time.

These were all successful for the company, but it wasn’t until 1987 that the Happy Meal debuted its biggest collaboration at the time.

Disney teamed up with McDonald’s to bring its movies to life with toys inspired by its films.

Now with the recent buzz about the adult Happy Meal, it kind of feels like people are forgetting history.

But McDonald’s debuted its first “adult Happy Meal” back in 2004 as a way to appeal to grown-ups with healthier options. Instead of a toy, the adult Happy Meal came with a 15-minute fitness DVD.

It’s safe to say that when it comes to the Happy Meal, especially the toy, McDonald’s is always looking for ways to keep its ideas innovative and fresh.

Even if that means looking toward the past.

MCD Gets Nostalgic in 2022  

MCD has a few more promotions in mind before 2022 wraps up.

With the fall season here, it has plans to bring in some business with another nostalgic move.

The company announced it’s bringing back its famous Boo Buckets before October ends.

Let’s see if all of this action has helped MCD’s stock.

MCD’s Stock Power Ratings and Volatility

MCD earns a “Neutral” 42 out of 100 within our proprietary Stock Power Ratings system.

Let’s zoom in on volatility to see why MCD is outperforming its peers on that factor.

After MCD stock reached its 52-week low back in March, it had a decent upward trajectory into August.

But its stock price dropped throughout September due to shaky market pressures.

Overall, MCD’s price action has followed the S&P 500 but has outperformed the broader market since April 2022. That’s why its volatility score is so high (a higher volatility score in Stock Power Ratings denotes lower volatility).

The Bottom Line

McDonald’s scores a “Neutral” 42 out of 100 on our Stock Power Ratings system.

However, “Strong Bullish” stocks are no anomaly.

We expect those stocks to beat the broader market by 3X in the next 12 months!

To get one highly rated stock you should consider investing in every weekday, check out Matt Clark’s Stock Power Daily.

Monday through Friday, he gives you one stock that scores 80 or above on our system and tells you why you should add it to your portfolio — for free!

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