Two McDonalds Stock Myths To Avoid ($MCD Valuation Analysis)

In this video, I share a valuation analysis for McDonald's stock in light of its recent stock price decline. I also point out two common myths some investors have about McDonald's stock, and share the price I would personally be willing to buy $MCD.
(Additionally, the $5 membership level will get you access to stock analyses beyond those in the S&P 500 and a big discount to the annual price of my Investing Group on Seeking Alpha, should you ever choose to join there.)
As always, I do not provide individual investing advice. I share the methods I personally use to value stocks and other investments, which may lose money.

#investing #stocks

[jgdacashman]

What’s ridiculous about these price targets is that McDonald’s stock has never fallen that hard from its ATH barring a black swan event which you’ll be waiting a very long time for.

The average that McD stock will drop in a given year since 2000 is 17%. People are asking you for your projections because we have fallen 20%. And the stock tends to recover 25-35% in a year from these average lows.

That being said, McDonald’s, like many dividend stocks, is an excellent scalp play. No one is buying it to hold 5+ years for an underwhelming CAGR. The real play is buying cheap call leap options and taking advantage of the strong rebound potential because institutions never sell this stock.

[dpbass]

At a price of $165 you're looking at a 7.25% earnings yield and that's assuming no growth in the company and a P/E of about 13.8. The company has on average had a P/E of 25.82 in the last 10 years so that is a 46.5% decrease below their 10 yr avg P/E . I am on the neutral side of MCD. I think the competition from the likes of CMG, CAVA, and SG are putting pressure on MCD to be a better business. CMG, CAVA and SG are in this new niche of healthy fast food and I think the value the customers get from these businesses has been so much better than what they get from MCD. I would like to see MCD compete with these healthy fast food places by giving more value to the customers through lower prices. I think short term MCD could see 275 again in the next 3-6 months but we will see. Thanks for the vid. Subscribed!

[profitbear]

I appreciate you bringing this against-the-grain analysis regarding MCD stock. Very few people are willing to stick their neck out and express reality on this much-loved stock. I love challenging my beliefs and assumptions and you present a mighty and very logical challenge here. I recently bought shares, but you've given me food for thought. At this point, I will hold my shares and let them play out, but will likely not buy any more. If I take a loss, it will be a learning lesson.

You make great points regarding CosMcs, it's tough to make a new concept like that work. I appreciate you breaking down their earnings growth, minus inflation and buybacks. Helps put everything into perspective. While I don't believe it will happen, it is sobering to see Mcdonald's stock has dropped 75% in the last 20 years.

I am really enjoying your channel. The way you break things down is intuitive, and while our strategies don't always align I love the perspective you bring to investing. I think you have created a very effective strategy, and I almost always learn something new when I watch a new video

[louisaparker]

What is your current stance on Albermarle (ALB)? Are you still holding the stock? Do you think it's now an even better buy, than it was a few months ago?

[Yan-pztl]

Thanks for the video!What do you think about PayPal and tsmc ?

[ryanretirement]

Never buy restaurant stock for long term because they don't survive.

This guy again buy McDonald's at $9.95 if you listen to this guy you'd be on the sidelines fir 30 years meanwhile everyone else is making $.