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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Similar
QSR
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)
BUY ON WEAKNESS
Same store sales have continued to be strong and sees them continuing to re-invent themselves. Growth is high single-digit, but the value is looking a little rich right now. He would definitely buy on weakness.
HOLD
Interesting name. He likes Restaurant Brands International (QSR-T) in the sector. Mixed feelings as it is expensive. It is defensive. Low beta.
HOLD
Unbelievably well run. Best of all the fast food places. Not cheap, don't buy it here. No one's been able to knock them off their perch. Hesitates to sell a great business just because it's not cheap. Innovative, phenomenal quality control, increasing dividends, huge free cash flow. Yield is 2.5%. (Analysts’ price target is $199.00)
BUY
There's no reason why this sold off, but all stocks sell in a correction. This is a consumer stock, and US consumers with many jobs and rising incomes are in a strong space. MCD will do well. Wage inflation hasn't hit yet, either.
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