Opinions Mohsin Bashir
McDonaldsMCDBUY ON WEAKNESSNov 19, 2012
Mohsin BashirStock price when the opinion was issued
As of Aug 03, 2026. Market Open.
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His team initiated a position last year and added to it in this last drawdown. Very little wrong with the business itself. It's struggling because US customers are struggling. Continues to open stores and grow same-store sales. Close to 20x PE, steady Eddie.
Martin Cobb, ASIPIs near August 2024 lows. Is still operating very well, but inflation is eating into profits. Don't need to rush into this.
Kevin SimpsonThe headwinds are pretty severe, The consumer is strapped along with a K shaped economy where 80% are at the lower end and are struggling. They make up the bulk of McDonalds users. There is also a strong move towards better eating habits, health consciousness and weight loss medications.
Half its business is NA, half international. Not a huge amount of growth, perhaps 5-6%. EPS growth of 7-8%. Opens a few new stores a year. More of a landlord, with over 90% franchised. Very high ROIC.
Only 20x PE today, down from historically high 20s. In his world, it's a staple not discretionary :) Yield is 2.65%.
Martin Cobb, ASIP
She owns MCD instead, because MCD owns the real estate of their branches, so they collect rent. Because they are global, MCD enjoys economies of scale. It's defensive.
Christine Poole
$84.92 is reasonable but you have to look at the overhangs. The highly competitive value menu has to be looked at. This is clearly the market leader. Excess amount of cash flow to put WiFi in their restaurants. He would look for some level of support in the low eighties. You have to be careful of input cost inflations – bread, eggs and beef. They have been good in the past at passing increasing costs through to the consumer. Dividend income is a great way to mitigate risks.