MCD

There are many comments about McDonald's. When there are many comments, it also means that the stock has fallen, that the price-to-earnings ratio is becoming attractive, and that dividends are becoming higher. I have discussed McDonald's a few times already, probably once a year. So, we need to see where we stand now in terms of the returns side.

For comparison purposes, McDonald's has already been analyzed. Here it is. I will add it here to the latest discussions when we also have the video link. So, you can continue from there as well, but let's move on to McDonald's.

McDonald's is another of my favorite stocks at the moment. I ranked it among the top 10 stocks. I calculated a fair value for McDonald's stock at $330 per share. The current market price is $262. This leaves it with a 26% rise over the next 12 to 18 months.

McDonald's might be the most interesting and surprising inclusion into my top stock rankings in 2026. I've calculated an upside of 28% given my fair value estimate at $340 and the current market price of $265.

McDonald's, like Visa, is a stock that rarely trades at this much of a discount compared to its fair value estimate. But the restaurant industry has faced significant headwinds in 2026. In addition to some of the consumer trends like uh healthier lifestyles and uh increasing usage of weight loss treatments that have really reduced restaurant visitation in 2026.

Now, we come to McDonald's stock, who in the last year is down by over 10%, and in the last 5 years only up by 17% after we've seen the pullback in the last year. So, returns have certainly not been attractive, and of course, that's the reason that it's at a 52-week low. But what's interesting about trading at these prices is the starting yield for McDonald's is now the highest that it's been really in close to the last 10 years with the exception of the 2020 market crash.