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NYSE:MCD

McDonalds (MCD)

265.00
+4.94 (1.90%)
as of Aug 28, 2026, 8:00:00 pm Market Open.
346 watching
0
Investor Insights
star iconAug 28, 2026, 12:00 am

This summary was created by AI, based on 16 opinions in the last 12 months.

McDonald's (MCD) is facing challenges as the restaurant and consumer staples sectors are under pressure from various economic factors, including inflation and the so-called 'Ozempic effect' impacting low-end consumers. Recent data indicates a slight decline in traffic and flat sales despite efforts to focus on their app and international markets. Moreover, the cost of beef has surged, contributing to squeezed profit margins, although MCD continues to operate well with a solid reputation. While the company is close to the lows of August 2024, analysts suggest it remains a good business with potential growth, especially in the second half of 2026. However, uncertainty around consumer spending and inflation poses significant headwinds moving forward.

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Consensus
Mixed
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Valuation
Fair Value
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Similar
QSR,Restaurant
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.
BUY

MCD vs. QSR long-term He would've chosen MCD up until a few days ago when the CEO was fired. That CEO boosted margins and invested well in tech. They had 17 quarters of rising sales. Can the new guy keep this up? MCD is probably in better shape now because of him and good to own for the next little while; there's momentum here. QSR, in contrast, is made up of several chains. However, QSR has done well in pushing non-meat products, whereas MCD is not there yet. QSR could push ahead of MCD, given this. He'd still choose McDonald's.

DON'T BUY

They have challenges. Same-store sales are not living up to street expectations. This is not a terrible buy, but sees more growth in Starbucks. McDonald's pays a 2.6% dividend as it buys back shares with borrowed money, but interest rates will remain low.

SELL
After a huge drop after an earnings miss. It has massive downside risk--75%. Last few quarters have had poor earnings. They have been buying back stock which helps earnings. In the last 50 years, MCD has had three massive setbacks, always when the markets were overvalued. Their balance sheet is much weaker than six years ago. When a stock really falls hard, then suppliers and creditors look at a company's balance sheet--and MCD's has a big hole in theirs. The fundamentals are terrible.
DON'T BUY
McDonald's blew out all their equity. They have negative equity of $6.8 billion due to share buybacks and other measures. Their managers don't seem to care about their valuation which is sky high. He doesn't understand why they do this. It's never been more expensive. If MCD does get into trouble down the road (i.e. recession), this stock will go down a long, long way. A lot of blue-chip companies have no balance sheet, no equity.
SELL
Why don't you like it? He has nearly 50 years of trading data on MCD-N. Every time we have a market at excessive valuations, back to 1972, market corrections have caused this stock to decline 75%. Right now his model is saying the stock is already 50% over valued. The company has been buying back stock and book value is well below current share prices. Credit worthiness has slipped over the years as well. He expects history to repeat it self. You will get your but handed to you. He is not a fan of the non-meat products -- it is a fad.
BUY
Likes the name. Very competitive space. Extremely strong technicals. Low beta. Somewhat recession resilient. 2.2% dividend. Good name to own.
BUY
It's an enduring brand that has adapted well over the years. It's resilient and will survive a recession. Admires this stock, though it's no longer go-go grower it used to be.
PAST TOP PICK
(A Top Pick Aug 21/18, Up 39%) They've always managed to get it right. He is very excited about it. They have auto order / auto-pay. It is a really well managed company.
BUY

He thinks it is the best fast food restaurant to invest in. Against QSR-T he likes it better. There is less debt on the balance sheet. They righted the ship and are now going for growth.

WAIT
This is a solid name. Again, would wait to see how the markets shake out. He does not see too much positive happening in the markets over the next few weeks. He would be on the fence right now.
TOP PICK
They are a cash machine. Over 90% of stores are franchised. They normally own the property and lease it back to the franchisee. They are current, have been around for most of our lifetimes and have adapted. (Analysts’ price target is $214.50)
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