Opinions Peter Brieger
McDonaldsMCDDON'T BUYOct 27, 2014
Stock price when the opinion was issued
As of Jun 05, 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.
He thinks there is something structural going on in this business. All of us are looking more at just what we eat and are more dietary conscious. This company was a great innovator with new menu items, and this is what will drive same store sales. They have been struggling. You’ll see 5%-8% growth, but he just doesn't see much in the way of upside.