NYSE:MCD

McDonalds (MCD)

265.23
-5.41 (2.00%)
as of Aug 3, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconAug 3, 2026, 12:00 am

This summary was created by AI, based on 14 opinions in the last 12 months.

McDonald's (MCD) is currently experiencing headwinds due to inflation and changing consumer habits, making investment opinions mixed. While some experts note the company's strong fundamentals, including steady cash flow and international growth, concerns about its price-to-earnings ratio (around 20-21x) persist, particularly as US consumers grapple with economic challenges. A significant portion of its customer base is feeling the strain of a K-shaped economy, which could impact sales. Moreover, the increase in beef prices poses a challenge, although there's optimism surrounding potential price relief in the coming months. Despite these challenges, many analysts see McDonald's as a defensive investment with considerable brand strength and growth potential in the long run.

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Consensus
Mixed
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Valuation
Fair Value
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QSR
DON'T BUY
Well-run company. Fully valued. Not a lot they can do to tweak their business for more growth.
BUY
The best thing it has going for it is its international diversification, because as the US currency drops, their international holdings become more valuable. Also have a good refurbished menu.
TOP PICK
Doing a search on the Dow Jones industrials for the most undervalued name, this is the stock that came up. Up 40% differential between current price and their model price. Looking for a turnaround.
BUY
Went through a rough problem of management changes and declining sales have not come back. New menus and new advertising. Earnings growth should be pretty good.
BUY
Has had a nice run-up but worthwhile holding onto. Likes what they're doing. Same store sales are up.
BUY
They have great property and great locations and someone in the organization is going to figure out how to put things right. If they get it half right, the stock could be $30.
DON'T BUY
Questions the cost line in their balance sheets. Feels the market is saturated. Too expensive. Would prefer Wendy's.
DON'T BUY
Its a restructuring play.They need to get things turned around.They are making changes in their menus.
PAST TOP PICK
(A top pick on May 27, 2003.Up to 27%. ) Done a great job.The turnaround has begun.Lower US dollar has helped because of the global nature of their business.A strong cash flow.They've announced a share buyback.Limited upside from here.
DON'T BUY
Still in a restructuring mode. Have to get their menu updated and demographics of their customers. In a no growth mode.
DON'T BUY
Weak US $ is good for them. Have to renovate their menus to keep customers.
TOP PICK
Great brand name. Has been beaten down. New managament and they are now focusing on the profitable restaurants rather than expansion. Good cash flow.
DON'T BUY
Growth is going to be a lot tougher. Inexpensive now. Probably a 4/5% growth for the investor over the long term.
DON'T BUY
Will have to reinvent themselves.
PAST TOP PICK
(Was a top pick on Oct 23. Down 13%) Will drop further.
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