McDonald’s: Great Business That’s Unattractively Valued


  • MCD has maintained strong financial performance against the backdrop of a challenging macroeconomic environment marked by inflation and interest rate hikes.
  • MCD has leveraged its brand power to increase prices without losing market share or competitiveness.
  • Management has also done a great job increasing sales through digital, delivery and drive-thru, which are all higher margin channels.
  • The company has been able to grow EPS and dividends through the clever use of buybacks and leverage.
  • The stock however has limited upside due to its current high valuation which is more than double the consumer discretionary sector median.
McDonald"s Debuts A McPlant Burger In Limited Markets

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Analysts expect McDonald’s Corporation (NYSE:MCD) to report annual EPS of $9.95 against annual revenues of $23 billion when it reports FQ4 2022 earnings in the next few weeks. This will represent flattish top line and bottom line growth compared with FY

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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