Investors appear to be interested in McDonald’s shares this morning after the leading fast-food chain published plans to boost Russia’s restaurant footprint enormously. As reported by Reuters, the company says it has a “plan to open the 800th branch” in Russia by the end of 2020, a raise of roughly 50 new outlets bearing the golden arches.
McDonald’s stock reached an intraday record high Monday morning and was on track for its first record close since August 2019.
Shares gained 62% from their 52-week closing low
According to Dow Jones Market Data, the stock increased by $1.9% to $222.12 and has climbed 4.9% amid a five-trading-day winning streak. Shares boosted 62% from their 52-week closing low, set on March 23.
The expansion will be in the far east of Russia, a region where McDonald’s had not developed its restaurant network. Some of the cities earmarked for their first taste of Big Macs and fries include Vladivostok, a significant port city on the Pacific Ocean with around 600,000 residents, and Khabarovsk, a similarly sized metropolis 500 miles north.
According to McDonald’s reports, developing a network of branches in Russia is one of the company’s top priorities. Besides, this year also marks the 30th anniversary of the restaurant’s first Moscow outlet launch, an event that happened shortly before the fall of the Soviet Union. However, the Covid-19 pandemic derailed plant to celebrate the anniversary with discounted Big Macs, as reported by U.S. News & World Report.
Despite a share value dip alongside the rest of the market when Coronavirus slammed the U.S. economy in March and April, McDonald’s is now trading at the highest price its shares have witnessed during 2020.
The company also maintained its dividend through the Covid-19 crash, keep its status as a Dividend Aristocrat with above 25 years of unbroken dividend raises.