Opinions John O'Connell, CFA
McDonaldsMCDPAST TOP PICKNov 30, 2015
John O'Connell, CFAStock 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.
(A Top Pick Jan 28/14. Up 33.01%.) He still owns and still likes it, but is a little apprehensive about the build-up in debt and returning it to shareholders. It’s one of the stocks that is on his radar screen. They are doing a lot of buybacks and increasing their dividends, but have been downgraded. Returning a lot of money to shareholders, which he agrees with as long as it is excess capital.