Opinions Mohsin Bashir
McDonaldsMCDBUY ON WEAKNESSNov 19, 2012
Mohsin BashirStock price when the opinion was issued
As of Jun 04, 2026. Market Open.
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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
Was downgraded last Friday and today over fears they won't meet expectations this quarter, including disappointment over MCD's new chicken strips dish, that it won't turn things around. Rather, customer prefer heavily breaded chicken and the find these strips ugly. However, history says it has never paid to downgrade MCD. It's the king, offering good value and is highly well-run. The CEO will figure it out.
$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.