NYSE:MCD

McDonalds (MCD)

267.18
-2.58 (0.96%)
as of Jun 29, 2026, 8:00:00 pm Market Open.
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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
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.

HOLD
In the quick-serve restaurant space they have done well with drive thru business still doing well. More traffic will return, but they will need to make changes in seating first. A high quality name.
HOLD
Good company. Reaping benefits of a great turnaround. Will continue to do well as long as they can keep costs down. Stick with it. (Analysts’ price target is $230.00)
BUY ON WEAKNESS
An excellent business. He's owned this since 2003, but sold last summer when the yield curve steepened and the CEO turned over. Now looks like a buying opportunity. Inevitably, he comes back to MCD. MCD owns their real estate, so they have the best locations. MCD outperforms when investors look for defensive stocks, but it underperforms when the market takes on more risk (like now). They've added beverages very well in Canada, namely coffee.
TOP PICK
They continue to innovate with technology. They reported today good same-store sales. Like a REIT, it's a predictable money machine. (Analysts’ price target is $226.54)
DON'T BUY
He wouldn't buy McDonalds unless it dropped down to $90, which is substantially lower than were it's trading. It's only a good buy for the long term if you can buy it at the fair market value.
TOP PICK
Missed on earnings in October. He doesn't own it quite yet. It's a good stock that still owns the sector and brings in customers. A defensive stock. If it goes below $191, he would get out. He's looking to buy this in the next couple weeks. (Analysts’ price target is $222.63)
DON'T BUY
In their October report, earnings missed by 10 cents/share. In North America, MCD is cannabilizing their menu; with all-day breakfast, then what about lunch and dinner? He doesn't like food retailers in general. Decent dividend growth, but flagging sales are a red flag. Meanwhile, peers are building new stores internationally.
COMMENT

They own Yum! Brands in this space rather than McDonalds. One of the issues is that traffic into stores has been slowing in US locations. Arguably, growth with come in other emerging markets.

HOLD
Relatively defensive position, and the market's rotating more towards cyclicals. A great company. Likes it very much. It will have its time in the sun and its time in the shade. Growing earnings and cashflow very smartly. Be patient and let it work over a long time.
TOP PICK
38,000 restaurants across the world with 40 years of dividend growth. Over the last 5 years, it’s grown 9% compounded. It has a good growth rate. It’s come down around 10% for no reason and it is a leader in quick service. Has a good growth potential.
HOLD
The balance sheet is very healthy. His only concern is that companies that have been seen as safe have had their stock prices run up. He thinks this might cause the stock price to go sideways. They are the most innovative of the quick serve restaurant chains. They are testing Beyond Meat in south western Ontario.
COMMENT
Likes it. Adding at these lower levels. CEO leaving is not a huge deal. It's not a one-man show. Earnings look good. Good things to come, especially on the technology side which will lower costs and drive earnings.
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