When it comes to keeping stocks for the next 50 years, I’m looking for a company with a strong brand – a favorite that is an important part of consumers’ lives. Society can do well today. Or the company may have struggled recently after many years of success. In that case, he may be ready for recovery after the current coronavirus health crisis has subsided.
Here are three popular consumer companies – and those that are likely to be healthy and healthy from the middle of the century.
Walt Disney 04.30 NYSE: DIS he has a rough time these days. Its parks, which are part of its largest revenue business, have been closed for several months due to a coronavirus outbreak. At present, most participants are reopened due to measures aimed at social distance. At the same time, Disney is facing the cost of operating parks and introducing new safety measures, such as cleaning processes. The media giant has postponed debuts on the big screen, such as a live action film Mulan as the US health crisis continues
Despite this grim short-term situation, Disney’s long-term image still has many sparks. Magic Kingdom in Florida is the most visited theme park in the world, with Disneyland in California a short second. Some may prefer to postpone Disney tours in the midst of the current pandemic. However, when the crisis subsides, consumers are likely to return to their favorite activities, which they have been forced to stop – for example, when they visit Disney.
Meanwhile, Disney’s new Disney service, Disney +, is expanding. The company said it had about 54.5 million subscribers since May 4. This will prolong growth over the plan. Disney, which predicted Disney +’s profitability in 2024, initially set a target of 60 to 90 million subscribers.
Disney’s inventory will fall by 20% this year until Thursday. It doesn’t really have to pick up pace soon. However, investing at today’s prices has the potential to pay off in the long run.
McDonald 04.30 NYSE: MCD is another brand that is strong enough to predict a coronavirus storm. The huge fast food business once again took first place in Business Restaurant and Technomic report on the 500 most important restaurant chains with the highest sales last year. Although McDonald’s power in the propulsion units helped offset recent distance measures, the coronavirus outbreak still weighed on the business. In the second quarter, comparable global sales fell by 23.9%. This is compared to a 6.5% increase in the previous period. The good news, however, is that sales have improved month by month since the restaurants reopened. Comparable sales fell by 39% in April, but only by 12.3% until June.
Although we do not know the duration of the current health crisis, it is probably a temporary situation. So let’s look at the pre-disease numbers as a guide to McDonald’s future prospects. Comparable sales for the two months ended February 29 gained 7.2% from the previous year. And in 2019, worldwide comparable sales for the full year increased by 5.9% for the largest profit in the last 10 years. McDonald’s is also a good buy for dividend investors. Every year, the chain in the restaurant raised its dividend for 43 years when it paid dividends. Last year, the company achieved its goal of paying $ 25 billion to shareholders in a three-year period by 2019.
McDonald’s shares have risen more than 40% since the decline in market losses, erasing losses for the year. However, the shares are an advantageous agreement for a long-term investor.
Nike (NYSE: OF) the shares have rebounded by 54% since the fall of the market, which represents a decrease this year to only 4.4%. Nike temporarily closed most of its stores in key areas such as China and the United States, in the earlier stages of the coronavirus outbreak, and sales fell 38% in the fourth fiscal quarter. Nevertheless, online sales have encouraged investor optimism. The company recorded a 75% increase in digital sales in the 4th quarter.
Digital sales may not continue to grow at the same pace as most Nike stores, which are now reopening. However, profits from digital sales are likely to remain significant. Here’s why: Nike has been expanding its digital platform since 2017. At that time, it began striving to sell directly to consumers through its website and stores without any problems. It has already begun to bear fruit. In the quarter before the health crisis, the company recorded a 38% increase in digital revenues.
Now, supported by the recent pace of e-commerce, Nike is strengthening its initiative with a new plan called “Direct Consumer Acceleration.” It also includes data, inventory and membership to provide customers with quick access to products.
The strength of the brand also increases Nike’s revenue. The Jordan brand is a good example of Nike’s remaining strength. The Jordan brand released its last quarter of $ 1 billion late last year – 17 years after the retirement of basketball legend Michael Jordan.
It is too early to predict what will happen in 50 years. However, Nike has so far demonstrated its strength and ability to adapt to the changing market. Thanks to these features, this discretionary warehouse is a great long-term purchase for the consumer.