McDonald’s (MCD) is emerging as a winner in the fast-food sector by leaning into value-oriented pricing and strategic promotions, according to investment expert Victoria Green of G Squared Private Wealth.
In an interview with CNBC, Green explained that McDonald’s deep understanding of its customer base is driving same-store sales growth while competitors like Chipotle (CMG) struggle to connect with value-conscious diners.
“What Chipotle is losing, McDonald’s gaining,” Green said during the interview, highlighting the contrast between the two chains’ approaches to pricing. She noted that while Chipotle has signaled it won’t offer dollar menu items, McDonald’s continues to attract customers with its $5 and $8 value meals and promotional offerings like the Snack Wrap.
Green praised the company’s operational excellence and franchisee support, describing McDonald’s leadership as particularly effective. “They’re great at promotion. They’re wonderful at supporting their franchisees. They’re building out. They’re growing same-store sales,” she explained. The analyst also pointed to the company’s ambitious expansion plans to 50,000 locations as evidence of its growth trajectory.
The investment strategist emphasized McDonald’s sophisticated approach to customer engagement through its app loyalty program. “They just know their consumers so well, so they’re able to price things well. They know when to hold them and know when to increase,” Green said. She described the company’s business structure, including its ownership of real estate, as “brilliant.”
Looking at the company’s product mix, Green noted that McDonald’s has achieved a roughly fifty-fifty balance between chicken and beef offerings. While she indicated her firm is watching margins carefully, she expects management to strike an upbeat tone given the strength of their consumer insights and operational execution.
Green recommended McDonald’s as a solid blue-chip core holding, comparing it favorably to Walmart (WMT) as a representation of the value consumer. The stock has demonstrated resilience despite weather-related headwinds in January, reflecting investor confidence in the company’s strategic direction.