NYSE:MCD

McDonalds (MCD)

272.72
-0.57 (0.21%)
as of Jun 4, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 4, 2026, 12:00 am

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

McDonald's (MCD-N) is viewed as a consistent player in the fast-food industry, with a unique business model that relies heavily on franchising, allowing it to act more as a landlord. Despite a stable earnings growth rate of 7-8% and a yield of 2.65%, experts indicate that the stock's recent performance has been lackluster, with concerns about its growth potential and market trends. While some analysts express cautious optimism regarding the company's ability to adapt, particularly in the use of technology such as AI and robots, others note a potential decline in consumer spending due to inflation. The company is considered defensive due to its international presence and economies of scale, although the stock may currently be seen as slightly overvalued given its P/E ratio positioning.

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Consensus
Hold
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Valuation
Fair Value
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QSR
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.
TOP PICK
This is one of the ones he deployed cash into recently. It will be a survivor in the restaurant and fast-food industries. They were generating good sales through COVID. As incomes were being hurt, people could still afford to go to McDonalds. For a lot of independents, they could be out of business if they aren’t already. (Analysts’ price target is $202.60)
BUY
The share price has come back nicely. Delivery sales are way up and drive-thru's, too. MCD will endure and succeed, but expect an earnings dip.
COMMENT

MCD vs. Starbucks Can they increase locations and sales per location? MCD is saturated, so they are trying to increase the latter. Starbucks is doing both. MCD makes money from franchise fees. They're equal, leaders in their field. He can't choose one over the other.

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