Opinions Peter Brieger
McDonaldsMCDDON'T BUYOct 27, 2014
Stock 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
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.