MCD Stock Analysis — McDonald's
Sector: Consumer Staples
AI Verdict
McDonald's trades at a fair price for its expected growth, but with the moat largely reflected in the numbers, you’re not getting a bargain unless earnings outperform.
Competitive Moat
McDonald's owns a unique global network of franchised restaurants, giving it scale advantages in supply chain, marketing, and real estate. Its brand recognition and control over prime locations create high switching costs for franchisees and keep competitors at bay.
Summary
McDonald's is notable for its ability to defend margins and grow earnings even as its share price lags, with a forward P/E of 20.0x and expected 14.5% EPS growth.
Where It Stands
The stock is down -5.04% over the past year, trades at 20.0x next year's earnings versus a consumer staples median of 20x, and its RSI of 42.2 signals cooling momentum.
Key Metrics
- RSI: 42.2 — Neutral
- Trailing P/E: 22.9x
- Forward P/E: 20.0x
- PEG Ratio: 1.45
- Earnings Growth: +0.1%
- Revenue Growth: +0.1%
- Market Cap: $197.7B
- Dividend Yield: 0.03%
- 1-Year Return: -5.04%
- 52-Week High: $341.75
- 52-Week Low: $264.53
Analyst Consensus
24 Buy · 16 Hold · 1 Sell (41 analysts)
Bull Case
Analysts expect 14.5% EPS growth while you're paying a sector-average 20.0x forward P/E, so you're getting solid growth for a typical price.
Bear Case
If the P/E falls from 20.0x to 18x (a 10% drop), the stock could lose another $20 billion in market cap unless earnings surprise to the upside.
Catalyst to Watch
Watch upcoming quarterly earnings — a beat on EPS growth above the 14.5% consensus could drive a rerating.