NYSE:MCD

McDonalds (MCD)

267.18
-2.58 (0.96%)
as of Jun 29, 2026, 8:00:00 pm Market Open.
344 watching
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Investor Insights
star iconJun 29, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

McDonald's (MCD) is facing several challenges, with inflation impacting profit margins and consumer spending under pressure, especially among its primary customer base. Despite these headwinds, experts recognize McDonald's strong brand and global presence, with stable operations indicated by steady cash flow and dividends. Valuation metrics such as a PE ratio around 20-21 times are considered reasonable, especially with potential EPS growth of 7-8%. However, the future performance may hinge on external factors like beef prices and the company's adoption of technology advancements. Analysts express a cautious view with some considering the stock a staple for long-term investment while others advocate for caution amid current market dynamics.

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Consensus
Cautious
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Valuation
Fair Value
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QSR
PAST TOP PICK
(A Top Pick Jun 08/20, Up 22%) Pick when the market was selling off. Was looking at companies that would benefit from reopening. Made some money but not a lot and sold it since it was not benefitting from the reopening as much. Was a bit of a disappointment.
BUY
They report Wednesday. They'll guide up numbers and people will buy the stock. He predicts customers to come back.
BUY
Given long lines now. Their fundamentals are encouraging. It's good, and not just because of long lines at some locations.
BUY
The CEO is doing a great job and doing good things technologically. Shares are up 10% YTD.
WATCH
Part of the current reopening rally? The problem with MCD is that they've been inconsistent lately. It pays a 2.5% yield, but if that reaches 3%, then buy.
DON'T BUY

It has always been seen as a staple or safe haven. Outside of the US a lot of locations are still closed. In the US, same store sales numbers have been pretty good. It was strong coming out of last spring's COVID and through the summer. She would prefer a clothing retailer, however, such as ATZ-T.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 06/20, Down 7.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MCD has breached our $210 stop. We are recommending to cover the position at this time. We will look for other opportunities.
PAST TOP PICK
(A Top Pick Jan 29/20, Up 1%) He sold it last April during the meltdown. He saw danger signs of restaurants closing. Two-thirds of their business is drive-thru, but in-store dining looked vulnerable. But this has done well since then, so kudos to manager to maintaining their margins. No, he wouldn't have done things differently.
COMMENT

CMG vs. MCD - Why don't the stocks move in tandem if they're in the same business? CMG is going all-in with tech. CMG is more technologically savvy than MCD, though MCD is a good business. MCD is a dinosaur in comparison. MCD, though, is a great company.

WEAK BUY
Big store refresh. Share buyback program will take a bit to get going. Need to deleverage balance sheet. Can benefit as they shift business model to delivery. Key will be whether they see the drive-through traffic back. Not a terrible investment here. Peter Lynch's advice is to buy the stocks that you're already buying as a consumer. Yield is about 2%.
BUY
They're the king of the drive-thru economy. They report Monday. A definite Covid play.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly This fast food king has definitely benefited from the trend away from expensive restaurants. As we head into wave two of the pandemic potentially, this will continue to be on people's radar as an affordable break from cooking at home. Analysts at Bank of America just upgraded this to a $250 target. We would trade this with a stop-loss at $210. Yield 2.21% (Analysts’ price target is $221.52)

DON'T BUY
Used to own it. Doesn't see them increasing revenues. Cheap gas hasn't been the tailwind as expected, and now he expects increases in gas prices. Consumers are scared of the pandemic so aren't buying at MCD. Restos that rely in dine-in are less off than pick-up and delivery.
SELL
The business model isn't what it was 6 months ago. Does the stock price reflect the fundamentals of July 2020? Business is heavily challenged by government regulations for Covid.
PAST TOP PICK
(A Top Pick May 30/19, Down 1%) They sold in late-April when it was trading at mid-2019 market multiples. It did not seem to warrant that value during the pandemic, so they decided to exit.
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