Shares of McDonald’s closed at a record high Thursday and are up again on Friday, ‘likely because of upgrades made to earnings’, one analyst said.

David Zanoni, financial author and Seeking Alpha contributor said the fast-food chain’s $277.79 closing price on Thursday was a result of analyst upgrades of earnings per share over the last three months from $10.49 to $10.58 in 2023 and from $11.44 to $11.70 in 2024.

"McDonald’s typically performs well during uncertain economic times," he added. "With inflation, families of four could easily spend over $100 in casual restaurants; however, with McDonald’s, that cost could be 50% to 75% lower as a more convenient option."

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Zanoni said McDonald’s makes a lot of money collecting fees from its franchisees.

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As a result, "The company is a cash-flow turn-key operation, and part of this money is paid to shareholders as dividends.," he finished.