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NYSE:MCD

McDonalds (MCD)

279.19
+0.58 (0.21%)
as of Jun 18, 2026, 10:02:00 pm Market Open.
225 watching
0
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.
TOP PICK
They've done a good transformation and have cut costs. In 2016, they starting changing their model with new products (i.e. all-day breakfast). Since 2016, we've seen higher highs and lows and a definite uptrend on their chart. It's a core holding of his. (Analysts’ price target is $192.82)
DON'T BUY
He wouldn't touch it. It's very expensive on a P/B basis and FMV (fair market value). Sometimes, the market will carry a stock that doesn't deserve it. Consider yourself lucky for owning this, but he would then get out of it. The chart (showing strength in the past few years) is looking in the rear-view mirror. He doesn't see upside.
TOP PICK

This is a new entry into his portfolio. It owns 37,000 restaurants, 92% of them franchised. They typically own the land that the restaurant is on and the franchisee leases it. This creates a very stable flow of cash. Same store sales are growing well. They are innovating in food choices and in payment methods. They have allocated $6 billion for upgrading their restaurants by 2022. The average spend at restaurants is increasing and at all time highs. Yield 2.5%. (Analysts’ price target is $184.20)

SELL

They demonstrate everything that is negative about stock buybacks. You erode your book value and now they trade at 100 times book value. It is trading at only 20 times earnings, however. He calculates a fair market value 46% lower than where it is now. The balance sheet is mediocre, but not strong. He does not think you are buying anything of value with this one.

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